The banks had to tighten up home lending criterion.
Fannie Mae stopped buying junk loans and the banks had no place to lay off their junk loan paper.
since 2004 homeownership is down 7%+- so what?
https://www.census.gov/housing/hvs/data/histtab14.xlsx
Part of the reason is that less loans are available to less credit worthy borrowers. What is so wrong with that?