I think we’re all forgetting one major thing here.
It’s not new that lenders do what is called a loan “modification” similar to this, to help an INDIVIDUAL borrower or couple to stay out of foreclosure, because it’s a win-win generally for both involved. This is just a larger-scale version of that that involves a large number of people.
But still a small % of the entire market.
I congratulate you for your perseverance. The ugliness and knee jerk responses were pretty bad.
According to other articles on the matter, one of the challenges of crafting this deal is that the government wants to give the banks immunity from lawsuits for unilaterally modifying the terms of the bonds they sold.
This indicates that it's hardly a "win-win" situation for those who were sold a false bill of goods, and now have no recourse against the parties who defrauded them.