This article is about loan originators. Freddie and Fannie deal with the secondary mortgage market. One originates the loan (qualifies, verifies, does the paperwork), the other two purchase the note(mortgage) from the lender at a later date.
Better to help the home buyer, who may have been misled or misinformed, rather than the lender who over appraised and over loaned.
In the end, someone is going to get help. I’d prefer it be the homeowners, rather than bailing out the lenders who KNEW BETTER but loaned anyway.