In other words from Blackrock, I got mine.
BofA is scared beyond belief the mortgage insurers are going to win their claims to have the fraudulent mortgages recinded back to them. In other words, they are trying to buy their way out of what could sink them by having the insurers make the lenders whole which will easily bankrupt the insurers like MBIA. So, rather than being out 100 cents on the dollar, they hope they can get that down to something much less.
bump
A little creativity and they could solve all the problems. Many people just need a short term boost, like forgive the back payments as past due (they would still have to pay because it would not reduce the mortgage amount), or, if they are out of work, do a partil pay for 6 months or refi at a lower interest rate etc.