John, Joseph64 is at least partially right.
My husband and I qualified for one of those fancy mortgages. One of the banks we talked to about mortgages, Wells Fargo, told us we were qualified for a mortgage where payments would have amounted to twice what we knew we could afford.
We chose to believe our figures about what we could afford and went with a mortgage from a small, local bank for a far more reasonable amount.
Creating a moral hazard is indeed reprehensible, but its still up to the individual bear responsibility for his/her CHOICE to avoid the moral hazard or fall into the moral hazard.