The government is looking for ways to help people who are underwater in their houses (owe more on their houses than they are now worth).
How about not taxing those people? Instead of asking the bank to take the hit (and weaken their bottom line), let what they would pay in taxes go to the mortgage. Don't withhold taxes from these home owners, or try to collect taxes off their unemployment benefits.
Why should the banks have all the fun giving mortgage forgiveness?