If that was all there was to the mortgage mess, it wouldn't be a mess.
It’s a mess because it was abuse, and outright fraud was committed.
Something that can’t generally be prevented by legislation. Now they’ll simply find other ways to do it, i.e., straw buyers, faked tax returns, etc...
People with a propensity to commit fraud will do so. Passing laws to prevent it only hurts those who are legitimate.
It’s the same with gun laws.