However, did you know that the same thing is happening all over again?
Further, the new banking laws made more stringent regulations for conventional loans, and the FHA/VA loans became more heavily used. In my own area, the %-age of FHA loans v. conventional soared since the new regulation. We also saw that FHA took a bit hit from the collapse of the real estate bubble (and they were bailed out). Don't be too surprised if we see another such hit. FHA doubled its PMI rate, and made some new regs of its own to offset its preparation for future loan failures. I recently sold a home where the buyer got $12,000 toward his closing costs. Incombination with a PHFA 2nd mortgage, he got another $4000 toward the purchase. Essentially purchased a $235,000 home with less than $5000 out-of-pocket cash. No good will come of this.