Bingo.
THEN, the blame isn't with those people in their mirror. The blame is with the nasty banks who repossess. The leftists then scream about the nasty big businesses.
People with "less than stellar credit" shouldn't be buying a house. They should be changing their behavior so their credit is good. That is, saving money for a decent down payment is a way to go.
Is this now considered rocket science?
There always will be subprime in some form or another, and not everyone with "less than stellar credit" is a deadbeat or even is someone without a down payment. There are 101 reasons someone might need a subprime loan. However, I'd generally recommend 5% - 10% down to almost anyone, unless they have a lot of money they'd just prefer NOT to spend and would rather keep it in reserve. Everyone's situation is different. Mortgage lending is not one-size fits all, and I think that was part of the problem - people with 560 credit scores generally aren't responsible enough to purchase a home...but it does, admittedly, depend on why their score is that low. It could be because of 12 small medical collections, or it could be because of never paying a single bill on time, ever. The first case, probably OK to buy, second case, not so much. Which goes to show credit scores alone aren't a satisfactory indicator of creditworthiness despite what Fair Isaac says.
Sure, but just try to sell that message to an electorate full of people with "less than stellar credit". ;)
The Hillary message that "everyone deserves to own a home and if they can't swing it financially it's all the fault of Big Business" is going to resonate big time in the 2008 election. It's what people want to hear.