Via Brad DeLong, Tanta's detailed explanation of the Bush mortgage adjustment plan suggests that there's less to it than meets the eye:

From what I have seen about the plan to date, it is clear to me that it is in fact structured with the overarching goal of making sure that it stays on the allowable side of the existing contracts. I proceed from the assumption that nobody could write such a convoluted and counter-intuitive plan if that wasn’t the goal. So everyone who is thinking, “Gee, we’re violating contracts and we still don’t get much out of it!” is thinking the wrong thing, in my view. It’s more like “Gee, we don’t get much out of it when we don’t violate contracts.”

Meanwhile, Felx Salmon explains why lenders love the mortgage freeze plan, so it seems that the administration has its priorities straight as usual (that's sarcasm).