[quote=Arraya]Norms governing homeowner behavior stand in sharp contrast to norms governing lenders, who seek to maximize profits or minimize losses irrespective of concerns of morality or social responsibility. This norm asymmetry leads to distributional inequalities in which individual homeowners shoulder a disproportionate burden from the housing collapse.[/quote]

The reason that this “norm asymmetry leads to distributional inequalities” is that most folks will concede that without the buyer/borrower making the first move – that is, finding a property they first want to buy and then seeking out a lender to finance it – a mortgage isn’t created. (The Prime Mover argument.)

Since the buyer/borrower is the prime mover, why shouldn’t s/he shoulder a disproportionate burden from the housing collapse? It seems completely logical to me given the nature of how the transaction arises in the first place.