I heard one interesting suggestion – if residential loans just can’t be handled reasonably within the trusts, then the federal government could condemn all of the mortgages held in RMBS and restructure them however the government believes is appropriate.  The trusts could then take the condemnation proceeds (after how much litigation on value?) and distribute them to their investors pursuant to the loan documents.   This is a lunatic idea with a ton of problems.   But somehow, in light of what is coming out of Washington every  day, it is seeming less and less crazy to me. 

Marshall