To follow up on that, I agree with you.  By reducing the down payment requirements, we're re-creating the same situation we had in the 2000's.  That's why my focus is on re-financing and debt consolidations, which are limited to 80-85% LTV, depending on the program.  Most folks who bought within the last couple of years have mortgage insurance that I can refinance them out of with the recent appreciation.

Last December, I consolidated about $102,000 of consumer debt and eliminated about $20,000/yr of non-deductible interest for one couple and improved their cash flow by $1600/mo.  Haven't done a  purchase loan in 3 years.