If the argument sounds familiar that is because it is illustrative of a greater public discourse happening in Congress, in state legislatures and in the media on the same subject: Who, at bottom, is to blame for the record defaults among subprime borrowers: Brokers eager to close as many deals as possible or originators, spurred on by Wall Street, who have stretched underwriting and risk perimeters to the breaking point? Most of the borrowers that are defaulting are single-family home owners. However, anecdotal evidence is accumulating that the problems are affecting condo communities, with reports of delinquent fees increasing.

During his speech Robbins extolled the capital markets' developments over the past 15 years that have allowed banks to package and sell risk, thus resulting in more cost-effective loans for borrowers. The market is efficient in weeding out predatory lending, he said, pointing to the number of such companies that have gone out of business lately.

The mortgage brokers, though, he continued, should bear some of the blame. "Frankly, it's too easy to hang a shingle and call yourself an expert in mortgages," he said in his speech. "We need licensing of brokers, with a threshold that will weed out those unwilling to be responsible, to be held accountable. Some cross the line into pure fraud, and for them we have laws. But as long as there are scam artists willing to look someone in the eye and say "I'm going to get you something for nothing," people will be hurt."