Back in the 1980's, the rampant fraud then was pinned on inept real estate appraisers that would inflate the value to whatever level the mortgage lender was willing to make a loan. When these houses came back in on a foreclosure, the liquidation value was often for 20-30% LESS than the remaining mortgage obligation. Response - mandatory licensing of ALL appraisers, with strong emphasis on the "ethics" training, and harsh penalties for failure to comply. Well guess what, appraisers aren't even much involved in home appraisals any more, something called an "Automated Valuation Module" is used to set the loan value on homes now, particularly refinance loans. But like the error to which Appraisers were prone to back in the early 1980's, houses tended to be overvalued for the market, and the loan-to-values are getting badly skewed once again. Almost ANYBODY can get a 100% loan, which with various fees and all, is really about a 105% loan-to-value.
And because the level of interest rates is relatively low, the monthly P&I is relatively low as well, encouraging buyers to purchase a higher-value house than they would ordinarly could, when interest rates averaged somewhat to MUCH higher. When these adjustable rate mortgages are once again adjusted up to more historic levels, a LOT of people are going to be priced out of their homes.
Yeah, there is a crisis coming.