Kinda, but not really. Wall Street was buying NINJA (No Income No Job Applicants) loans from shady mortgage brokers and selling bundles of them as packaged garbage tranches to gullible buyers (aka state/school/university pension funds) that should have been junk-rated but were given AAA by the rating agencies. It was all a gigantic sham from origination to dumping as the movie showed.

But the Fed has been buying up any and all mortgages for over a decade now, as Fannie Mae & Freddie Mac used to do. Loan originators could dump their bad loans onto the Fed's balance sheet without a worry. But if the Fed stops buying them up, then there's nowhere to run if the loans go bad. Thus, loan originators are going to become much more selective on offering loans without the Fed bailout option in play.

All this adds up to fewer qualified buyers which means sellers have to lower prices ---> which leads to lower property values ---> which leads to shrinking home equity loans ----> which leads to homeowner's "wealth" dropping precipitously --->> which leads to fewer impulse buys, vacations, eating out, etc. --> which leads to business failures ---> which leads to job losses....etc.

You get the gist. It's a vicious cycle. The fictitious realm of "appreciating real estate" will finally come home to roost as the fraudulent offset to inflation it appeared to be and falsely convinced homeowners that they were growing wealthier while the banksters eroded away the value of the fiat currency.

I predict early 1960's prices for homes within the next 5 years. That'd be $25-$50K (a year's salary for a salaried professional in those days) for a typical 3 bed, 2 bath 2000ish square footer. Those were the final days when gold held the fiat dollar in check.

Net-Net - The Fed has been the ever-reliable "backstop" for continued garbage loans. If they pull out, the housing market will precipitously decline.