This is about early GWB-era liars’ loans, apparently. And the FHA was left holding the bag on their insurance (I don’t know why they just didn’t refuse to pay than to pay and then sue, it would have been more straightforward).
You may want to recheck your history. The problem started when Clinton and Reno threatened to prosecute banks for refusing loans to deadbeats. GWB tried to stop it and was rebuffed by Barney Frank and Congress.
Being a Realtor during the run up, during the real estate crash and now in the recovery, 16 years full time, the bureaucrats and their fricking regulations demanding everyone has a right to a house, crashed the country.
Once again unintended consequences. When will they ever learn, some people just should not have a mortgage. You should see the houses these "renters" turned homeowner looked like when they were done with them, rode hard and put away wet x10!!!