Wow, poor job OP as this is only half the story. First correct your title that this is only in the case of touch ID enabled home button. Second apple has acknowledged the issue and this is what they say
We protect fingerprint data using a secure enclave, which is uniquely paired to the Touch ID sensor. When iPhone is serviced by an authorised Apple service provider or Apple retail store for changes that affect the touch ID sensor, the pairing is re-validated. This check ensures the device and the iOS features related to touch ID remain secure. Without this unique pairing, a malicious touch ID sensor could be substituted, thereby gaining access to the secure enclave. When iOS detects that the pairing fails, touch ID, including Apple Pay, is disabled so the device remains secure.