A software project that actually delivers code possesses the potential to generate income in a way that residential homes do not. In that respect, granting loan

A software project that actually delivers code possesses the potential to generate income in a way that residential homes do not. In that respect, granting loans on flimsy pretexts to software projects is better than to non-owner-occupied homes. If it pleases you, imagine loans to anything else that this crowd works with on a daily basis. Don't let the analogy distract you from the core thesis pointing out the perverse incentive structures raised around residential loans leading to undesirable policy outcomes. I'm very hard-pressed to come up with any other business where 4-5 figure sums of USD cash can lock in 6-7 figure values of assets, at preferential interest rates, over very long payment terms, with only consumer-grade credit ranking and formulaic "comparable value" asset analysis for loan approval. If you've ever owned a business for any length of time sufficient to talk with your business banker about credit terms, you'll immediately recognize the extreme disparity between those terms and normal business loans and lines of credit terms. It is indefensible to pledge taxpayer financial support to real estate businesses via these loan vehicles.