In the long run, giving houses to people that cannot afford it will drive the United States further off of the fiscal cliff. Furthermore, this is a direct result of monetary mismanagement and the federal government screwing up once again. There needs to stop being these break for irresponsible people.
The US needs to stop giving mortgages to people who cannot afford it. When people are looking to buy a house, they need to realize what they can and cannot afford in the long run. The result of all these mortgages has been many foreclosures, which is bad for the economy and housing market.
It is clear that there were people who were taking out loans when they did not have the income or resources to pay them back. At the same time, banks failed in their duty to vet these people thoroughly, and worse, the bigger financial firms were making money off the failures through credit default swaps until the whole thing finally collapsed. It is clear that stricter regulations are needed, especially about mortgage-backed securities.
The US needs new mortgage guidelines compared to those that have been in place for the 15 years or so, but the market seems to have begun to take care of itself. The government's well meaning, but flawed, intentions created a catastrophe. Already, the mortgage requirements have begun to revert to the old standards. The best guideline is to learn from history.