Few can predict when but there will be a correction because nearly every economic metric that is used for analyzing the potential for a market correction is manipulated in some form or fashion which causes a false sense of security by the consumer.

The inexperienced buy into much false hope with the timing of the bank's performance and pass that false hope to you the buyer!

8.will these new programs create a false temp value of homes?

That makes my $2700 San Jose house seem not so absurd...

Dude relax...it's theater of the absurd. 

Additionally, the $500k loan appears to be transactional so if you were to find a deal to wholesale that would work, but again the criteria is often intentionally absurd. 

If you file than your second sentence is a false.

Giving false or misleading information on a loan application is mortgage fraud (MF), it's a bit different than other types of fraud, no, a lot different.

If you go to a car lot and buy a used car, the owner does not have to make the false statement to you to induce you to buy a car, an agent of his can do that and it can be used against the owner. 

The false signal is removed, and the economy slows as economic reality sets in and bad debts are wiped out.