Agreed with gn and bsr… Think about it… the investors have the following alternatives… Watch the investments they made go basically down the tubes or accept a much lower rate of return with no gaurantee of what will happen in the future. The investors have absolutely no (or very little) recourse here. Even if they went all the way back to prove that the orginator was at fault during the underwriting process and tried to get the loans returned eventually the lender will just go belly up (see new century) so that path is dead as well.
So the alternative is to modify, stretch out the timeline and hope in 5 years the climate has changed.
