“Homeowners don’t have a lobby”. You seem not to be joking, so I suppose you are serious. Homeowners are the main drivers of this entire massive government intervention. They are maybe 3/4 of all voters. Various people wield some power in our political process, but every dollar starts in Congress. Congressmen like a lot of things, but getting re-elected comes first.

Sure, careless investors who loaned too much money to people who were overpaying for homes are also trying to avoid the appropriate consequences, and there are a few hundred thousand of them, and they are mostly wealthy. But the politicians aren’t bailing them out directly – they are aiming to instead keep homes overpriced. That way homeowners get what they want too. Re-election. It’s magical.