«a good majority of these mortgages owned by the Fed or some other government organization at this point? So why do we really care about their losses?»
That was exactly the point, to transfer the losses on mortgages from the rich who own large financial institutions to the taxpayers, who are only the middle class and the poor.
Also because a lot of mortgages are to relatively wealthy speculators, as someone who has assets nominally worth hundreds of thousands of dollars obviously is far richer than most middle class and poor families, and some of the biggest growth in crazy mortgages was to wannabe lords of the manor to buy McMansions.
Conversely, if one looks at mortgages to poor Americans, usually colored, they tend to be tiny (a few dozen thousand dollars), and to be current (not in default), as the (mostly colored) poor both tend to be more prudent with money and are less favoured by lenders than the imprudent "aspirational" upper and middle classes who feel entitled to the lifestyle of the lord of the manor. - Blissex
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