Hey, sorry it's taken me so long to reply to your post! I completely missed it. I agree with what you said completely. If you haven't read it, check out Tom Wood's book Meltdown. It's only about 150 pages long and really explains the housing crisis in detail, from the Fed's loose monetary policy, to the Community Reinvestment Act, Fannie/Freddy loan guarantees, to the relationship between .gov and the banks and so on.
I don't think government can really make any regulations which will be helpful. The best thing the gov could do is just butt out and only intervene when contracts are broken. Fannie/Freddie need to be liquidated, CRA repealed, laws forcing lending to minorities repealed, and most important of all...we need sound money. I personally favor the Hayekian competing currency idea. The government should, however, accept only gold and silver in payments and only make payments in those metals as is specified in the Constitution. Private transactions could use whatever medium.