I’m not buying it , “commitments” ,, What exactly does that mean? Seriously it’s not hard money or loans. I see it (allowing the ponzi that was the real estate bubble) as more of a payoff to the “banks” and their cronies that oversee them .. an excuse , COVER , for bad loans , known to be bad at inception .. loans that were propped up with phony appraisals and sold of before they were even funded.
Correction: People who “COULD” pay it back but chose not to!
Im in the mortgage biz, banks did not voluntarily give people loans they knew could not afford. They were forced to do so in most instances under community lending guidelines. Most of the loans were still loans that people could afford to pay, even if the rate was adjustable.
Problem is, the people didnt sacrifice the luxuries in an effort to constinue to pay mortgages.