I have owned a small mortgage company for more than 15 years and have been writing mortgage columns for more than ten years. One observation is becoming more unsettling to me: The mortgage industry is becoming more irresponsible in its business practices and advertising.

History has proven that when an industry as a whole becomes irresponsible -- perhaps even unscrupulous, the government steps in and starts to regulate. While this may be a good thing for the consumer, history has also shown that too much regulation can be harmful to everyone.

It's time for the mortgage industry as a whole to put a little more effort in self-regulation before the government regulates it to death. I write this column as an observant consumer and some of my recent observations aren't pretty. Consider the following:

• Homeowners across the country receive countless solicitation letters with misleading and false information. I have a stack full of letters that I have saved up over the last year or so. Every one is misleading in one form or another. My favorite boasts a 30 year fixed rate of 1.95 percent. Come on now.

• I click on a mortgage advertisement on a very well known internet site. The hyperlink simply says, "Mortgage Rates as low as 5.375%." I go to the site and read the fine print, which was almost too small for my old eyes. It turns out the 5.375% is only good for six months and the rate increases by one percent every six months thereafter. It also confesses that it carries a 2.50 percent origination fee. 2.50 percent? Come on now.

• A recent study by the Federal Trade Commission found that nine out of ten borrowers do not understand the charges and closing costs associated with the loan. Say what? Not one client of mine has ever left my office without a full and comprehensive understanding of his loan, the terms and the charges, if any. It's the loan officer's job to ensure that this happens. Come on now.

The mortgage business is highly regulated as it is, but unfortunately it's pretty evident that the current laws aren't working. Here are a couple of examples:

• The law requires that the lender issue a "Truth-In-Lending" statement at time of application. The form requires disclosure of the Annual Percentage Rate, or APR. The APR is supposed to give the borrower the cost of the loan, expressed as an interest rate, when you consider the note rate and any upfront charges, closing costs, and points. The problem is that it assumes the borrower will hold the loan to the full term, which is an impractical assumption. A loan with high fees and points that is paid off early will be result in a very high APR.

• The Good Faith Estimate of Closing Costs is required to be sent to the borrower within three days of making the application. What's up with that? It seems to me that calculation and explanation of the closing costs should be part of the application process.

While some laws designed to do something actually work, other laws have simply exacerbated the consumer's confusion. It's time for the mortgage industry to police its own people. We need to stop the hard-sell, eliminate misleading advertisements and concentrate on what we're paid to do -- help folks choose the best loan, help them find the most competitive terms and ensure that they have a complete understand of their mortgage program.