"Borrowers rushed in and mortgage debt soared to $1.4 trillion in 2006, double the $708 billion in 2001, according to Fed data."
I don't know what Fed data Bloomberg is referencing, but there was approximately $10 trillion in mortgage debt in 2006, not $1.4 trillion.
Perhaps there was $1.4 trillion of new debt added in 2006, but that is not how it is represented in the article.
Bloomberg goes on to state a projected overall mortgage loss of just under $1 trillion. In fact, the Price Schiller Index indicates the market to be down 25%, or around $5 trillion in aggregate. The mortgage loss is probably half of that, or $2.5 trillion to date.
Bloomberg is cheerleading. This linking protocol ("Borrowers") is neat.