The only people responsible for the current housing mess are the ones that bought seasoned trade lines to raise their credit so they could qualify for loans that they really did not deserve and the appraisers who said that homes were worth more then they really were so people could get mortgages without making down payments.
Add to that the morons who signed adjustable rate loans thinking that the market would bail them out before the higher payments kicked in and there you have the result, foreclosures all over the Country.
This will change, but it will take a few years for the market and the lenders to recover from these losses.
As far as how bad it will look, there is nothing as bad as a foreclosure, bankruptcy or repossession for your credit.
As far as the FTC stepping in, they have to a certain point. Come September the way credit scores are calculated will change and people that are authorized users will no longer get additional points added to their scores. This is going to be retroactive so anyone that has gained points by this will lose them.
Other than that, it is not the FTC's job to step in and save anyone. Nor is it any branch of Governments job to save anyone from their own mistakes.
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