Why wouldn't they? Nobody is going to introduce a bill for higher mortgage rates. It's just like all those bill that were proposed to eliminate Predatory Lending. Gee who wouldn't vote for that.

But what does it mean?

1) Mortgage services get some incentive and protection to try and work more with borrowers? -Good
2) Requires mortgagor certification to HUD that the mortgagor has neither intentionally defaulted on an existing mortgage, nor provided false information, nor (as under existing law) been convicted for fraud during the 10-year period ending upon the insurance of the mortgage under this Act. -- This pretty much handles all those "Stated Income" Loans. If you lied on your application about your income then you don't deserve the help. Let's take a look at those tax returns verses the loan application to see if there is some differences.
3) Bans from the HOPE program mortgagors whose net worth exceeds $1 million. -- Ok so rich people don't get the deal. Probably shouldn't have defaulted.
4) Authorizes the Secretary to establish a payment of up to $1,000 per insured loan to the loan servicer of the existing senior mortgage for every loan insured under HOPE. -- not a huge incentive but at least it is something.
5) Directs the Secretary to establish, if feasible, an auction to refinance eligible mortgages on a wholesale or bulk basis. -- at least they put in the feasible statement. Can you picture Christies packed with people for this auction. 2,2,2% ,now 1, how about 0% any takers
6) Nationwide Mortgage Fraud Task Force Act of 2009 - Establishes in the Department of Justice the Nationwide Mortgage Fraud Task Force to address mortgage fraud in the United States. -- Nothin' like big government. Yeah let's create another department -- that always works.
And my favorite to points for last:
7) Expresses the sense of Congress that mortgage holders, institutions, and mortgage servicers should not initiate a foreclosure proceeding or a foreclosure sale on any homeowner until foreclosure mitigation provisions of title II of this Act, and the President's "Homeowner Affordability and Stability Plan," have been implemented and determined to be operational.

8) States that the foreclosure moratorium should apply only for first mortgages secured by the owner's principal dwelling. Sets forth duties of the consumer to maintain property and to respond to reasonable inquiries.

Let stop everything and let people live for free in homes they could not afford until we see if government plans are working. Then we can pump all this property on the market that should have been foreclosed on and see how it affects things. And by the way Mr. In Forclosure who can't afford to make a payment... be sure that you cut the lawn and keep the place looking neat.