House loans exceeding 125% of its value?

 So now Obama's sidestepping Congress and monkeying with the financial system in our country again. It's taxpayer dollars he'll be loaning, but he wants those votes! So he'll restructure loans both for houses and students.
 Look at this: 

Pricing details won't be published until mid-November, and lenders could begin refinancing loans under the retooled program as soon as December 1, the newspaper reported, citing federal officials. Loans that exceed the current limit of 125 percent of the property's value won't be able to participate until early next year, the report said.

In Denver Wednesday, Obama will announce a student loan initiative.

  Did responsible homeowners know you could exceed the value of your home by 25% NOW? And we're going to encourage people to exceed even THAT?
  This all goes back to Dodd and Frank's encouragement of mortgage lending to people who couldn't possibly make the payments. No, it wasn't encouragement. It was blackmail of the institutions who were threatened with lawsuits if they didn't loan to targeted areas which were depressed and not worth much. The idea was that it's a RIGHT in this country to own a home, whether you can afford it or not.
  We are surely headed for ruin.