Many people are of the belief that the mortgage crisis that began in 2007 was brought about by underqualified first time buyers defaulting on loans that were too readily available. Bankruptcy Attorney Dave Chenelle points out a November 14th, 2014 New York Times article by Bethany McLean that states otherwise. Her research indicates the majority of bad loans were a result of cash-out refinances of existing mortgages. Using the mortgage as a source of credit can be the only way for some to meet their financial needs but the combination of rising home values and falling interest rates will definitely lead to a correction. People interested in the full article can see it here:
http://www.nytimes.com/2014/11/14/opinion/a-house-is-not-a-credit-card.html?ref=opinion&_r=2