I'm sure that the fact that this legislation is politically popular has nothing to do with its passage. One problem you don't hear much about is that the recent bubble put a lot of people in houses that wouldn't normally be in houses. When you see these foreclosure properties they are usually in really bad shape - and not always intentionally. What kind of people lived there? Apparently they don't know how to take care of a house. And now the government is going to guaranteed their loans? Bad idea.