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I think you can label this action how you will but it seems to me that this an effort to save the businesses that took on bad debt than just an effort to save consumers who made bad choices.
You can point out that consumers didn't have to sign on the dotted line but it is also true that the lenders aggressively marketed these mortgages to "borrowers with a spotty credit history" who are defaulting on their loans now that their variable rate mortgage is climbing.
In other words, if the system were left alone, people would default and lose their homes and, given the volume of bad debt, the lenders would have to write down the value of these debts.
It looks to me that nobody involved in this (lenders or borrowers) really thought all that much about what would happen if rates were to go up. And looking at it that way, it seems that an individual certainly has responsibility for their actions and how it might impact on their own lives but the organizations have a responsibility to their investors to not take on so much bad debt (so much that it threatens the viability of their organization).
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"My hands are on fire. Hands are on fire. Ain't got no more time for all you charlatans and liars."
- Old Man Luedecke
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