[toomuchtodo]

My house was secured, had a 5% interest rate, and the bank lost over $150K when I walked away from it. People still default their mortgages when they're as little underwater as $10-15K, yet, the interest rate on mortgages has not shot up. Go figure.

[danielweber]

I overall agree with you, but the vast majority of mortgages are being backed by the Federal government right now.