We could cut to the chase and take the probable losses now. It would be hard to implement operationally given the sorry state of the systems we have. The only other option to letting nature take its course is called “forbearance,” which allows us to pretend that somehow things will spontaneously get better. If there are other options we don’t know about them or we’re not telling. Some of the losses may be due to capitalized past-due interest (arrearages) and the attendant servicing fees, but we’re not telling that either. We have this model. Blame someone else for the net present value part of it. There are a lot of assumptions. We list some of them. We want you to believe that the model is precise enough so that we can judge differences to the dollar. As far as we’re telling you, assume that there is no estimation error associated with our model, at all. Putting the losses on the servicer (hint, hint) saves our bacon. This is ugly, and we don’t want to be blamed for any of the possible bad outcomes–you make the tough decisions and we’ll do our best to implement it, but we don’t know how to do it and resources are scarce.