The wrong diagnosis


http://www.bloomberg.com/news/2011-07-06/housing-recovery-hindered-in-u-s-as-government-works-at-cross-purposes.html

Fannie Mae and Freddie Mac imposed stricter criteria in response to the flood of foreclosures.  The new criteria was a response to the housing bubble. The real cause of the housing crisis and the continuing recession is the stagnation of wages for the majority of people.

To promote the idea that the housing crisis can be solved with a stroke of a pen easing the lending requirements is a complete fallacy. Doing so would just create bubble # 2.

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