Having said that, I wouldn't be shedding any tears for the GOP, or hell even the American people at that rate. Yes Bush did try to stop it occasionally, or at least partially rein it in, but he never made it a priority, and of all the political capital that he had in 2005 and 2006, he never spent on meaningful amount trying to stop any of this. And likewise, the American people in many ways got what they wanted... they paid dearly for this notion that home ownership was an unmitigated good and that it should be actively increased through whatever means available. You can bash the Dems if you want, and some of that is fair enough, but there are no virgins in this whorehouse.
I think your post is mostly right. However, out of curiosity, how would you have responded to the the Maxine Waterses and Artur Davises of Congress, whose argument would undoubtedly have been "You just don't want black folks to have houses"?