Before the 1980's mortgage lending was limited to the credit unions and other member owned institutions like S&Ls. This regulation had been put in place after t

Before the 1980's mortgage lending was limited to the credit unions and other member owned institutions like S&Ls. This regulation had been put in place after the Great Depression of 1929, in order to limit speculation in housing. This regulation had largely worked, and housing prices were largely flat in that era. Regan deregulated the banks and this led directly to the failures in the S&L's later in the 80's. It also led to the wild boom & bust cycles we have seen in the housing markets.