Is it because they're not repaying their mortgages according to the terms of their loans? I have no sympathy for welchers, flakes, and people who over extended themselves. But I guess the holders of mortgage-backed securities will take it in the chin because of misplaced blame, populism papulism, and otherwise falling for the trap of doing good for the unfortunate of our society.
I did not make any editorial on the fact, just reported it. But you are correct, the ramifications will be felt in many more areas than just the lender and their bank.