Did you see in the article that besides no down payment, no closing costs, they were also waving the private mortgage insurance (required when putting less than 20% down) and also NOT LOOKING AT CREDIT SCORES.

WTAF?

These buyers won't be concerned with price, and will pay whatever price is asked, won't they? This will cause a skyrocketing price surge for lousy properties. Now, since they neither saved for nor anticipated buying a house they cannot afford, they will also have no money to maintain such a home (blockbusting and trashing of the homes will ensue) and with no skin in the game will stay in the home NOT MAKING PAYMENTS and will overstay in the home for free until forced out.

Sounds like these lenders simply want to earn yield points on new loans, ethics be damned!