FHFA suit: Which banks are involved? - Political Economy - The Washington Post If the FHFA was supposed to be regulating the US mortgage market, isn't this action in a sense a reflection upon their systemic failure to do their own job for many years running up to 2007? WTF were they doing when people were allowed to borrow eight times their earnings, and in the UK at least, self report earnings? D'uh, people can't live and repay those amounts, the only hope for repayment is continuing bubble inflation of the asset, which of course is caused by them allowing more and more people to get deeper and deeper into debt. I am sure the graphs would have shown that the debt bundles were indeed AAA rated, but even so, it remains caveat emptor. It takes two to tango, and our governments had the banks' cocks deep in their throats. Still do.