3% Down and No PMI - Good or Bad Sign?

[Bill R.]

Ran across this article on Housing Wire that says that BofA is offering 3% down, no mortgage insurance loans to help buyers get into a home.  Apparently they're conforming loans which means they can be bundled up and securitized which smells a lot like what got the housing market into trouble last time around.  

Granted they're not doing ninja loans or anything but there have been a few articles recently pointing to the fact that home buyers in the $150K - $300K range have less equity in their homes than they did even before the 2008 financial crises.  

Just wanted to throw that out there and hear from of of the old hands regarding what they think this means for the overall housing market.  

My inexperienced take on it is that if so many home buyers can't afford to put 20% down either wages or home prices are out of whack.