“To whom should we give credit for the nationwide housing put?”
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Hard to say exactly – probably a combination of folks. There has been alot of input so far above and beyond Barney Frank & Co., including the ASF and MBA. The SEC and the FASB are obviously major players in this thing. There is alot of interest in keeping homes off the institutional books and keeping the revenue streams coming in. About the only entities I can think of off the top of my head that would truly benefit from mass defaults are the hedgies that have bet against borrowers by purchasing derivatives.

MBS investors have and will always face risks, some more than others depending upon which tranche they have bought into. The hope is that the money will keep rolling in. If the investor isn’t happy with the tranche performance, they can sell.

The extent of loan modification impact in SD, assuming the doors are open for them to be made on a grand scale, will depend upon the scope of the modifications offered. It’s just too early to tell. It’s definitely going to be interesting to see how this plays out. There is alot going on that is not widely reported.