Continuing with my previous post.
The White House was following the moral philosophy of consequentialism leading up to the 2008 housing crisis. Homeownership for all Americans was seen as the morally correct approach, so the policies regarding the giving of mortgages were relaxed to accomplish this morally acceptable goal of homeownership for all.
Congress, and basically the rest of the country, went along with the White House, many from a deontology philosophy perspective. It was their duty or obligation to support the policies of the White House so that the morally acceptable position of homeownership became a reality for everyone. They did not question the White House policies and consider the consequences of such changes in the lending policies.
While there were clearly some members of Congress that were followers of virtue ethics, they did not have the courage to be heard. Of course, the country was having one big party: the banks, mortgage bankers, and rating agencies were making enormous profits, millions of homebuyers became qualified over night and purchased their new homes, and Congress and the White House were “high-fiving” one another for delivering the American Dream to all Americans.
Of course, all parties do end and someone has to clean up the mess.