The Labour Party has said that Ireland and Europe must learn lessons from how the US economy has been weakened by the vulnerability of its mortgage market.
Labour's Enterprise Trade & Employment Spokesperson, Ruairi Quinn, welcomed proposals by the Financial Regulator to change legislation so mortgage lenders who target people with poor credit histories can be regulated.
Mr Quinn said there has been a worrying increase in the number of financial companies offering mortgages to people who have defaulted on loans in the past.
He said Ireland needs to learn from the US economy, which has been damaged by uncertainty over mortgage repayments.
At the launch of his Annual Report, Chief Executive at the Financial Regulator Pat Neary also said that all lenders offering equity release products will be regulated.
In recent years there has been a series of new home loans companies, called sub prime lenders, entering the Irish market and targeting people who have defaulted on loans in the past.
Sub prime lenders offer such individuals home loans, but at higher than normal interest rates.
These lenders and all providers of equity release products will be regulated.
The regulator has also raised concerns about levels of competition in the credit card and motor insurance industries.
Almost 80% of the credit card market is controlled by AIB, Bank of Ireland & MBNA.
The regulator is also concerned about the fact that interest rates range from 9% up to 18%.
And people are frequently unaware how often they use their credit cards or deny it to themselves, according to the regulator.
