I thought the whole purpose of the rapid workout criteria is that they dont reunderwrite the loan. I do think it will encourage defaults but the servicers will be smart and QC SOME of the loans and get a sampling to catch fraud. So it will be a numbers game, you risk a 90+ day serious default on your credit and you might get nothing from it. But then you just walk away (assuming you have a no recourse loan) and take your lumps and give the bank the junk asset.
