The government addresses the issue of subprime mortgages, which are high-risk loans made to borrowers with poor credit histories, through various regulatory and oversight measures aimed at promoting responsible lending practices and protecting consumers. Here are several ways in which the government addresses the issue of subprime mortgages:

1. **Regulatory Oversight:** Government regulatory agencies, such as the Consumer Financial Protection Bureau (CFPB), the Federal Reserve, the Office of the Comptroller of the Currency (OCC), and the Federal Deposit Insurance Corporation (FDIC), oversee mortgage lenders and enforce compliance with laws and regulations governing mortgage lending practices. These agencies conduct examinations, investigations, and enforcement actions to address violations of lending laws and regulations, including those related to subprime lending.

2. **Underwriting Standards:** The government establishes underwriting standards and guidelines for mortgage loans to ensure that borrowers have the ability to repay their loans and avoid default. Underwriting standards may include requirements for verifying income, employment, assets, and credit history, as well as debt-to-income ratios and loan-to-value ratios. These standards help mitigate the risk of lending to borrowers with poor credit histories or limited financial resources.

3. **Consumer Protection Laws:** Federal and state consumer protection laws, such as the Truth in Lending Act (TILA), the Real Estate Settlement Procedures Act (RESPA), and the Home Ownership and Equity Protection Act (HOEPA), govern mortgage lending practices and provide protections for borrowers, including those with subprime loans. These laws require lenders to provide clear and accurate information about loan terms, fees, and risks, and prohibit certain abusive lending practices, such as predatory lending and unfair or deceptive practices.

4. **Mortgage Reform Legislation:** In response to the subprime mortgage crisis of 2008, the government enacted mortgage reform legislation, such as the Dodd-Frank Wall Street Reform and Consumer Protection Act, which imposed stricter regulations on mortgage lending and enhanced consumer protections. These reforms included measures to strengthen underwriting standards, improve mortgage disclosure requirements, and establish rules for qualified mortgages (QM) that meet certain criteria for borrower affordability and loan performance.

5. **Affordable Housing Initiatives:** The government supports affordable housing initiatives to provide alternatives to subprime lending for low- and moderate-income borrowers. These initiatives may include subsidized mortgage programs, down payment assistance programs, and affordable housing development projects aimed at expanding access to homeownership opportunities for underserved populations.

Overall, the government's efforts to address the issue of subprime mortgages focus on promoting responsible lending practices, protecting consumers from abusive and predatory lending practices, and ensuring the stability and integrity of the mortgage market. These efforts aim to prevent another housing crisis and promote sustainable homeownership for all borrowers.

The U.S. Department of Housing and Urban Development (HUD) plays a crucial role in shaping mortgage policies through 

1. Operating FHA and providing mortgage insurance on mortgages for single-family homes, multifamily properties and healthcare facilities

2. Enforcing the Fair Housing Act and offering housing assistance through the Community Development Block Grant program and the Housing Choice Voucher program

3. Supervising other programs to assist low-income and disadvantaged Americans with their housing needs

4. Supporting the Housing for the Elderly and Housing for Persons with Disabilities programs, which provide affordable housing for vulnerable populations

5. Encouraging recapitalization of the nation's aging affordable housing stock through programs such as the Rental Assistance Demonstration

6. Facilitating housing counseling assistance through HUD's Office of Housing Counseling