No small share of the blame for the mortgage meltdown lies with the Clinton administration. In the 90's, the democrats (and plenty of liberal republicans as well) decided it wasn't fair that some americans could not get home financing. They accused lenders of being biased. They pressured lenders to relax their qualifications for home loans. That bird has now come home to roost. It is also due to lenders stretching the limits of qualifying and in some cases actually falsifying qualifying documents and lying to borrowers about the loan they were getting into. I can't even estimate how many customers I have had who did not know they had an adjustable mortgage until it adjusted.