700b is just 5% of the mortgage market. CA and Fl have suffered 20% to 50% declines in the value of real estate. Almost 100% of the second loans given out in the last 3 years now have no security. Those seconds loans are almost worthless now and they have very little chance of recovering any "hold to maturity value". Californians have the option of walking away for purchase money loans and they are doing so in droves and the will continue to do so. Florida real estate is unlikely to come back unless they start making 4000 dollar a month loans to people make 2000 a month again. The lenders will be dumping those "worthless now and worthless to maturity" loans on the tax payer. The tax payers will not be buying the performing loans secured by senior liens - we will be getting loans which collection attorneys are not even willing to buy. There are probably a few trillion dollars of loans which have no hold to maturity value. Guess who will be owning them.