The FDIC is trying to create a program to guarantee home mortgages to encourage modifications to contracts. This is stupid, particularly because in many of the cases, you can’t find anyone to modify the contract, because the instrument is held in a portfolio of bonds with hundreds, if not thousands, of stake-holders, all of whom have a legal right to veto any change,

The solution is simple, and does not cost the taxpayer anything: Modify bankruptcy to allow judges to modify mortgages. When you can’t find the owner of the loan, an judge handles it, and when you can, it to force lenders to the table.