In the US on Tuesday, “federal regulators took a big step toward easing postcrisis lending rules, agreeing to drop a proposed requirement that borrowers make a 20% down payment in order to get a high-quality mortgage. Regulators, heeding warnings of real-estate groups and consumer advocates who said such a move could crimp the ability of millions of Americans to get a mortgage, voted to require only that a bank document a borrower’s ability to repay a loan and ensure their debt is below a certain threshold. At the same time, the federal government is shifting course on Fannie Mae and Freddie Mac , announcing plans to use the mortgage giants to expand credit rather than reducing their outsize role in the housing market.” (WSJ)
I guess this is self preservation for housing regulators. If there is no housing market then there is no need for regulators.