... It's easier to do a cramdown when the loans are still held by the banks that originated them, since banks are subject to federal supervision, while holders of securitized assets are not, according to Richard Green, director of the Lusk Center for Real Estate at the University of Southern California in Los Angeles. Cramdowns on securitized loans are also tougher because it's harder to identify the owners of the mortgages, he says.
"That's why it's hard to come up with a practical mass-modification program," says Green. "Under normal circumstances, I think cramming down mortgages is a terrible idea, but these are not normal circumstances."...