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.
This will help some, and it will hurt some. More (much more) paperwork is generally a pain but it would have prevented a large number of the no down, no documentation loans that should have never been done in the first place. Fly by night loan officers will have a much harder time with these.