RALEIGH -- State leaders are calling on mortgage companies to change the way they do business.

State Treasurer Richard Moore unveiled an eight point plan Tuesday. The plan comes on the same day the U.S. Treasury Secretary called for an aggressive response to the problem.

Surrounded by figures and maps of the mortgage meltdown in North Carolina, Moore called for change.

"We're calling on all mortgage lenders to adhere to these principals to improve their long term stability and prevent another mortgage meltdown like the one we're experiencing right now," Moore said.

The plan asks mortgage companies to only give loans buyers can afford and they must offer fixed rate loans as well as adjustable rate loans.

"All of us in the industry can, I think, benefit from being reminded about these principals and I think homebuyers can use them as a touchpoint when they are in the marketplace shopping for a mortgage," Robert Kucab from the NC Housing Finance Agency said.

Financial leaders from New York, Florida, and Kentucky have signed on with North Carolina to push this plan.

Moore hopes the plan can help in both the short and long term.

In most cases, homeowners are near the end of their adjustable interest rate. That means after years of a good rate, it can go up and so does mortgage payments. Foreclosures are up more than 40-percent in North Carolina.

The question is now will these principals proposed by state leaders work and impact mortgage companies across the country?

"I'd hate to be on the other side saying oh no, this will hog tie our business," Moore said. "Tell me what's bad in here for long term shareholders."

Kucab added, "Everyone loses when a home goes into foreclosure. "The homebuyer loses, the neighborhood loses, the city loses, the state loses."

State leaders believe these ideas could be a win win situation for all parties including mortgage companies.

We should note that Richard Moore is also a candidate for governor. The Democrat faces Lieutenant Governor Beverly Perdue in the May primary.