WHY

THE HOUSING JUSTICE FOUNDATION OPPOSES THE TERM RESPONSIBLE HOMEOWNERS The phrase "responsible homeowner" is offensive because it necessarily implies those who are not current on their mortgage are irresponsible. However, homeowners now in foreclosure are not the perpetrators of irresponsible spending, but the victims of systematic deception. In the rush to securitize the housing market, financial institutions convinced investors seeking safe returns that real estate was an extremely safe investment. It was in the interest of financial institutions to mislead the public so that the exuberant growth of mortgage-backed securities could continue. Financial experts encouraged and approved mortgages they knew were unsustainable in order to meet the incessant demands of the mortgage- backed securities market. When the exuberant growth proved unsustainable, homeowners who sought a safe investment those individuals who were actively avoiding risk were now held responsible for the crash of the market. Instead of refinancing properties to actual values, the mortgage industry blames homeowners for making unsafe bets. Since the collapse of the market, many public figures continue to blame the victims of a financial pyramid scheme for the collapse of the economy, while the architects of the scheme remain untouchable and resolute in their financial infallibility.