"Show me just what Mohammed brought that was new, and there you will find things only evil and inhuman, such as his command to spread by the sword the faith he preached." - Manuel II Palelologus
This is a complicated situation that has lots of aspects. To the extent that government agencies like FHA and FReddie and Fannie have performed a function of buying mortgages and regulators saw weaknesses in their governance, they capped their activity and that put the brakes on, it squeezed the market and created a credit crunch. The caution seems wise. The inaction of Congress and their obsession with imaginary and feel good laws instead is negligent.