I watched his speech and he was just perfect. (I am not his admirer). He mouthed a few platitudes and sympathies, and offered trivial amount of useful help through FHA expansion.
The sensible real policy change is going to be the possible elimination of tax obligation on forgiven loans. An interesting consequence may be borrowers may interpret it as a suggestion to walk away from loans that don’t make sense in the new home value regime. That may multiply REO a lot more.
