When I mentioned the article to my wife, she said it was absolutely correct. (She's a corporate executive vice president and the director of residential lending for a bank.)
There was a federal program at the time to assist those low-income debtors who had been badly screwed - primarily by mortgage brokers. My wife said she was disgusted by the number of well-to-do people who tried to get a loan reduction under the program, even though none of them qualified. While the assistance program applied only to a mortgage on a single-family home which was the primary residence of the mortgage holder, she had people coming in complaining because they couldn't get the program to lower their loans on speculative purchases of several houses and even on construction loans. Assholes.