What has caused the real mortgage problem? The OCC says there are nearly 35 million loans.?

Banks were giving loans to people that they new couldn't afford them and mortgage brokers were lying about their credit ratings telling banks they were grade A paper when they really weren't, legislation was originally ped to prevent discrimination but with a lack of regulation some people decided they could make a lot of money and took advantage of the system. Panic set in and people started fearing they would never be able to afford a home so they let themselves be talked into loans that they didn't understand. Truthfully there is no one party to blame this on, it was greed and fear that caused it and now we all pay the price.