I don’ t know that what this article talks about is the solution. There are plenty of guidelines which determine whether or not a borrower can repay the loan. The first indicator is the Debt to Income Ratio (DTI). The second is the employment history. What you really need to attack in my opinion is mortgage fraud and abuse of low documentation loans.
Debating Standards for Mortgage Lenders : Yahoo! Finance: “As more homeowners fall behind on their mortgage payments, the debate is heating up over whether lenders should be required to ensure that the loans they issue are suitable for their customers.”