There are several sites that debunk this myth that is often cited by bankers, Republicans, libertarians, Fox News and other equally discredited sources.
This is not about blaming anyone specifically because few are without any guilt. The two parties are equally guilty and I agree upon that the republicans tried to spin it their way in the last few years.
What happened was not that lenders where forced to do anything but private lenders could give out loans to anyone and then they sold stocks “with crappy loands” to Fanny and Freddy. They accepted basicly anything. Private financial institutes would in the beginning never accepts anything like that but in the end after many years even them swayed by greed started doing it because they could see it work for Freddy and Fanny. Add to that a few rating institutes with vested interests. In turn when foreign investors bought bonds later on they got these toxic assets on their hands. The rest is history. If you can’t see how this regulation didn’t fuel it I’m not sure how to put it. How could regulatory agencies have helped this when all the people appointed often have very close ties to these same financial institutions? Greed should never be underestimated and it will find it’s way in to any nook and crannies in government.
People also lied on many of these loan applications and it was also encouraged by the lenders. Freddy and Fanny never even looked it up in a majority of cases.