Your reasoning is just populism. The Democrats want to buy votes by violating the property rights of note holders. Do you understand that the note holder has an agreement with the borrower? Do you understand the Democrats want to use the power of government to change the agreement? A mortgage involves risks on both parties. Many mortgages would not be made if the loans had the terms the Democrats want to force on lenders now. Note holders are entitled to enforce the contractual terms of the loans. Anything short of contractural terms is a property rights violation by government.
IF that were the case, I would agree with you. But you know that was not the case. And as much as I am a conservative it does not make me a partisen hack for the Republican party. Whether we like to hear it on here or not, the executive branch for 8 years failed in its regulatory job and as a result this mess was created. Yes, the Dems were there too.
But this has nothing to do with Dem or Rep or even populist. It certainly has nothing to do with contractual terms when the rules of the game were violated to such a degree.
I will give you this point, though. Many people got into homes they could not afford with loans that were absolutely stupid.
Just to elaborate my views a bit by way of my situation, my wife and I were approved for a loan amount way over what we could afford and we did not take it. The realtor said, just go variable and you can have the house. We said no way and got a house we could afford at a low fixed rate. After we bought it, we skrimped and saved and paid it off as fast as we could (six years). We saved heaps on interest.
That said, the banks got bailed out for their stupidy. Why shouldn't the homeowners also. Personnaly, I am real tired of the corruption that is wiping out the middle class and you should not be making excuses for it.
Nice try, but no sale. When the government is guaranteeing your loans this is in no way a two-party contract; this is the bank gaining all the potential profit and the taxpayer holding the risk. Any resemblance to a true mortgage market was wrecked with the creation of Federal loan guarantees.