'I can't be the only one who thinks it's crazy for my husband to buy his ex a house': Woman won't let her husband buy a house for his ex-wife; family makes her out to be the bad guy

What do you think about this situation? So, a married couple is living together and expecting a baby together. Her husband was previously married with kids until he divorced his ex-wife after she cheated on him. The husband let his ex and kids stay in their fully paid-off home, and he moved out. Fast forward a bit, and the ex loses the house and is left with no money (we're still a little confused about how that happened). She's now in an apartment. The OP's husband wants to buy her another house so his kids "won't be homeless." Even though the kids are now living with them, not the ex in her apartment. Our OP thinks this is totally bonkers and would rather have the kids live with them until they are 18. Her reasoning is that she's thinking about their baby on the way and does NOT want her hubby spending that kind of money on a house for his ex. Who's right in this situation? 

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