But, sometimes, mandating limits on what an industry can do is beneficial to consumers and the industry itself.

We believe Attorney General Terry Goddard's call for a statutory prohibition on predatory lending practices belongs in that category.

The vast majority of Arizona lenders do not turn a quick buck by taking advantage of people's naiveté, language barriers or age.

But some do.

Mortgage loan problems are now among the top 10 complaints consumers make to the Attorney General's Office. Practices include exorbitant fees, high interest rates, balloon payments, and huge prepayment penalties that kick in if someone in a bad loan situation tries to refinance.

Many of these loans begin with a solicitation to refinance an existing mortgage. Instead of the promised lower monthly payment, the unwary mortgage holder may wind up owing much more money and being vulnerable to foreclosure.

The problems are occurring in the sub-prime or high-risk loan market. Those victimized generally have no credit, such as new immigrants, or bad credit. These folks are especially vulnerable because they have few choices. They also represent a genuine risk to lenders, so it is understandable that they would have to pay higher interest rates.

But they shouldn't be gouged.

Goddard's proposal addresses only the high-risk loan market and makes straightforward requirements for disclosure and reasonable limitations on problem practices.

It is designed to protect consumers, not drive lenders out of business. Given the scale of Arizona's real estate market, it is likely that lenders willing to abide by reasonable rules would soon replace any unscrupulous lenders who fled as a result of the restrictions.

In addition, Goddard points out that Household International and its subsidiaries survived restrictions resulting from a national settlement in a case alleging unfair lending practices.

The reputation of the entire mortgage-lending industry is diminished by the few who engage in predatory lending. The industry's reputation would be enhanced if industry leaders joined in efforts to enact meaningful reform. In addition, action on the state level would prevent cities from coming up with a patchwork of different rules designed to protect residents.

Amy Swaney, incoming president of the Arizona Mortgage Lenders Association, says there are "predatory individuals" working within the lending community, but her group favors a national solution. But existing national guidelines have not been sufficient, and future federal laws may also be inadequate to protect Arizona consumers.

At least 20 states have passed predatory-lending laws to protect the specific needs of their residents.

Arizona should, too.

We urge the mortgage industry to work with the attorney general to design and support a bill that will protect high-risk borrowers in Arizona from predatory practices.

That would benefit consumers and industry.