That problem is that loans are easy to get the gov stamp. It's more that the fee the government charges for its stamp is too low, such that if the loans sour,

That problem is that loans are easy to get the gov stamp. It's more that the fee the government charges for its stamp is too low, such that if the loans sour, the taxpayer ends up paying back the loan. Partly because the state charges too little for the guarantees it offers, taxpayers are subsidising housing borrowers to the tune of up to $150 billion a year, or 1% of GDP. Since the government mortgage machine need not make a profit or have safety buffers, well-run private firms cannot compete, so many banks have withdrawn from making mortgages. If there is another crisis the taxpayer will still have to foot the bill, which could be 2-4% of GDP, not far off the cost of the 2008-09 bank bail-out.