This is going to put the banking industry at risk like the fiasco in the 80's. Unsecure loans are a problem already, with defaults growing every day. I predict big, big problems in the months to come.
Even though these loans are supposedly not federally backed, I guarantee that once this scheme starts to unravel, it will be suddenly noticed that the 'situation is so severe' that the taxpayer will have to be called to pay the bills.