The housing market and the mortgage market has stalled. With the elimination of most of affordability products and mortgage rates that can't go too much lower price gains have stopped and lending has greatly decreased, see graph below from Confounded Interest. Now the housing industry is trying to recycle old ideas to stimulate lending activity and home prices. However with Dodd-Frank most of those affordability products will not qualify as Qualified Mortgages. This has reduce the ability of banks to inflate home values. However, there some ways to expand lending by broadening scope of FHA and the GSEs beyond principal residences.
WHY THE FHA SHOULD BE OPENED TO INVESTORS
FHA mortgages are supposed to be a vanishing species but the use of such financing is actually on the rise despite higher costs and tougher terms.
The overall FHA market share[READ MORE]