If you can't afford a house and/or if you have bad credit, you should not be able to get a home loan, period. If nanny-state regulators and elected officials, urged on by leftist activists, had not pressured lending institutions into making so many sub-prime home loans, and if Freddie and Fannie had not encouraged such loans by securing or financing over one trillion dollars' worth of them, there would have been no housing collapse and no financial meltdown. There would not have been huge amounts of sub-prime loans that could have been bundled into toxic assets in the first place, because they would not have existed.
And what is especially sad is that most liberals simply refuse to acknowledge the government's role in the housing collapse and the financial meltdown. "Lack of regulation"?! Yeah, like a "lack of regulation" of Freddie and Fannie--the Democrats blocked every single attempt to impose regulatory restrictions on Freddie and Fannie's lending practices.