Net new government insured credit added to the economy also adds to inflation.
Then they blame everybody else for inflation.
If you have a lot of equity in your home and a good credit rating banks will happily give you a second mortgage. If you default the bank will not lose money as they will then foreclose on the house and no taxpayer money will be lost.
The only reason the government wants to enter this market is to give loans that are not financially sound. If they default you can bet your ass the taxpayer will pick up the bill.