That’s easy. The 2038 problem is fixed by using 64-bit processors running 64-bit applications. Just about everything built in the last 15 years has already got the fix

Using that fix, the problem doesn’t come up again for about 300 billion years

It’s bad because it’s dangerous. If something happens and you can’t pay the mortgage any more, then the idea of a mortgage is that you can always just sell the house to settle the debt instead.

If you get into negative equity though, then even if you sell the house you could owe a huge amount of money and have no way to do anything about it. An under-control debt could turn into a crippling debt overnight.

I suspect the real reason politicians care, though, is because that’s the one scenario in which the lender might lose money. They prefer their customers being able to pay their debts (theoretically)