Once this idea gets passed (which I’m afraid it will), do our insane politicians really expect that the market will fund future mortgages? Fat chance. If you eliminate the recourse for deadbeat borrowers, investors will simply find other places for their money.
Agreed, the problem is that lenders cannot afford to foreclose upon houses that they can't sell because of a hugh glut in the residential real estate market and a series credit crunch that prohibits buyers from buying the foreclosed properties.