The idea, as all liberal/communist ideas are, was to make the responsible people pay for the irresponsible. Instead of putting high rates on the risky loans, they made the non-risky borrowers subsidize the risky one by force. The goal is to freeze up credit and put the economy into a further tailspin.
I read that it was the law of unintended consequences that bites the liberal communist kabal but you just can't be wrong every single time. This is definitely on purpose.
It isn't too dissimilar from the proposal to force medical insurance companies to set rates without regard for
pre-existing conditions. The purpose of that is to drive rates so high the companies cannot sell policies, and
socialism can fill the void.
