Mel Martinez, who served as Orange County Mayor before being tapped by President George W Bush to direct the U.S. Department of Housing and Urban Development, says there has to be a cautious approach to approving housing loans.

But he says the federal government should also try to streamline regulations around access to credit, which could encourage banks to lend more.“So in this fragile period of recovery the government has to play a continuing role", Martinez said, "but it ought to be a diminishing role and one that ends, and put it in private hands.” 

Martinez says although the housing market played a part in the recession, he believes it can also help Florida and the US return to prosperity.

The former Senator also wants to reduce the impact of foreclosures, which have hit Florida particularly hard.