Mortgage crisis

The governments main responsibility in a free market economy is to minimize corruption but sometimes the government tries to do more and one example is what became the mortgage crisis of 2008. Before the 1970's banks would assess the credit worthiness of a mortgage applicant and offer loans accordingly. There were rules to follow, things like down payment and income. This meant that the rate for loans was determined by the willingness of banks to loan and the ability of the borrowers to pay back the loan. This led to discrimination against lower income people and often times these were minorities. The government then decided to intervene in the process which distorted the loan rates. In 1997 they passed the Community Reinvestment Act which forced banks to offer more risky loans. This allowed for more loans but not enough to satisfy the government so in 1994 they passed the Interstate Banking Act to encourage riskier loans. Still not satisfied in 1996 HUD started requiring that Fannie Mae and Freddie Mac to offer 40% of loans to low income groups. In 1997 the Taxpayer Relief Act removed the tax on the gain of the sale of a home. Starting in 2000 the Federal Reserve Bank lowered interest rates to historic lows which further encouraged home loans. Since Fannie and Freddie are semi government entities the government would back up any losses. This meant that banks could make high risk loans and keep the profits but any losses would be passed on to Fannie Mae which means passed on to the taxpayers and this is what happened as the banks were bailed out and the people lost their homes. The government is currently considering interceding in the student loan bubble. Will this result in unintended consequences?