I honestly hope we’re not going into a deep, protracted recession or worse. But, given just how dependent US economic activity is, upon consumer spending, it seems like it will be difficult to avoid. Also, so many people have gone into business for themselves, and stated income loans are extremely hard to find now, if not out of existence entirely. Those stated loans were heavily abused, but people with variable incomes, commissioned salespeople, freelancers and independent contractors, were the original intended market for that loan product. Without it, it’s going to be rough going for them to refi or buy a house, and possibly to obtain other types of financing.
I got along just fine renting for 15 years. I am sure the folks you mentioned can do the same.
Not really. Hand the bank 2 years of federal tax returns and it's no longer a "stated income" loan.