When this is appearing in the WSJ, we are about to move into phase 3 of this operation. In phase 3, the institutions holding MBSes are threatened with extinction when mortgage holders stop making payments. The well-connected of these institutions will soon receive bailouts, they’ll retain ownership of the properties, and either rent them back to the previous “owners” (who were really tenants all along) or sell them and pocket the cash. In effect, the US government will have paid to construct lots of housing, and then given it free of charge to financial institutions. Those same institutions will then collect rent in perpetuity or just sell the houses. It’s a win-win, just as long as you’re in the loop (which none of us are).