It's a measure to help the borrowers AND the lenders. It's better for the economy if the housing market is not flooded with foreclosures. It's better for the banks to not have to sell houses because they'd rather sit back and collect mortgage payments. They'd probably lose lots of money on any sales they did manage to close, anyway. Its better for borrowers because they can keep their homes.

I don't see a downside to this as long as it is a stopgap measure and not a permanent "solution." Lotsa folks hate to see anyone else get a good deal. It doesn't affect you, so quit hatin.