You mean they were too stupid to read the contract before signing it? Lucky for them as interest rates have fallen. They got the lower rate to start with and now reset with an even lower rate! Yes, facts are stubborn things.
The fraud on the part of the banks is far deeper than you understand.
One of the tricks used was to have a fixed rate explained on the first few pages of the mortgage doc, but deep in the pile of papers was a bit saying it was an adjustable loan, all nicely in done up in impenetrable lawyer-ese. After the signing, the bank ripped off and discarded the top pages. Another trick that seems to have happened is to just discard the original docs and show up at the foreclosure hearing with new paper and robo-signed affadavits saying it matched the first set.
I think it was market-ticker.org that had the reference to the Ameriquest fraud, but I can't find it at the moment.
The larger fraud, by far, is on the part of the bankers. That the government was part and parcel of this fraud via the CRA doesn't let the banks off the hook.
I just find it funny that out-and-out fraud by the banks (and the govt) gets a pass on this forum by folks who want to lay primary blame on the merely gullible.
They haven't fallen enough to match the original teaser rates. The mortgages are still going to reset upwards, though not by as much.