it MIGHT make sense for banks to be proactive in order to protect their mortgage portfolio.
it MIGHT make sense to see if default prevention is less expensive than forclosure costs, legal fees, and carrying property.
Like preventive maintenance on your car. Fix the minor problem now or get stuck in the middle of nowhere with a major problem.
But here, the government was essentially requiring lenders not to protect themselves.
I remember when they were screaming about "red-lining." The banks were protecting themselves. Take away the right to protect, then wait for the disaster to hit.
Sure, it would be nice if everyone could own a home. But don't make me buy it for them.