Reply #11: "this plan has to help homeowners stay in their homes."

[depakid]

Here's a fairly simple concept:

The more homeowners stay in their homes- and pay their mortgages, the more the mortgage backed securities will be worth.

Keeping homeowners in a position to pay them off requires modification of the terms of the contract in their favor- so an efficient mechanism for that needs to be put in place. Yesterday.

You can bet that some will whinge at the notion (and you can guess their arguments)- but that's the nature of Force majeure.

Both parties (or in this case- multiple interrelated parties) need to be able to perform to some extent.