Keep in mind the Fed is officially trying to break legal contracts. Not an area to tread lightly.
That part I have issue with and I don’t know how it will shake out.
Strictly mathematically, it’s probably better for the investors, as they’d lose more money selling at 65 cents on the dollar in foreclosure than doing this...legally, not so sure.
The fed isn't breaking anything. The fed is really just giving banks cover so they can change the loans that are in the banks/fund managers best interest, without getting in trouble from their investors. The banks want this.