A HOLC plan would purchase the mortgage loan at current value

What is the mortgage loan's value?  What the banks are carrying it at?  No, that screws the taxpayer.  What the "market" says it's worth?  Well, that just makes every bank probably insolvent.  (Now don't get me started on why the market values are wrong too, and mark-to-market accounting is stupid and why most banks are not YET insolvent, at least on a cash-flow basis).

They seem unduly afraid of the political push-back against progressive policies, but not afraid enough of the dangers inherent the current economic situation.

Institute Clear and Consistent Guidelines for Loan Modifications: Treasury will develop uniform guidance for loan modifications across the mortgage industry, working closely with the bank agencies and building on the FDIC's pioneering work. The Guidelines will be used for the Administration's new foreclosure prevention plan. Moreover, all financial institutions receiving Financial Stability Plan financial assistance going forward will be required to implement loan modification plans consistent with Treasury Guidance. Fannie Mae and Freddie Mac will use these guidelines for loans that they own or guarantee, and the Administration will work with regulators and other federal and state agencies to implement these guidelines across the entire mortgage market. The agencies will seek to apply these guidelines when permissible and appropriate to all loans owned or guaranteed by the federal government, including those owned or guaranteed by Ginnie Mae, the Federal Housing Administration, Treasury, the Federal Reserve, the FDIC, Veterans' Affairs and the Department of Agriculture.

and here it sounds like they are trying to do an end run around rhe HOLC wihtout calling it HOLC dopey critters:

Increasing The Size of Mortgage Portfolios: To ensure that Fannie Mae and Freddie Mac can continue to provide assistance in addressing problems in the housing market, Treasury will also be increasing the size of the GSEs' retained mortgage portfolios allowed under the agreements - by $50 billion to $900 billion - along with corresponding increases in the allowable debt outstanding.

I can appreciate that break for those who are behind on their payments, or one step from going into foreclosure, but I don't see why those who are current should get the break.

I assume they took the average monthly mortgage payment in the US in 2008 which is $684, which when multiplied by 12 comes out to 12 and one tenth months worth of payments or roughly 8300 dollars.

Consistent with its name, this is merely a stability program that is a wait and see approach as to what happens a year from now.  

HOLC would require creative legislation and there is no consensus yet on what legislation is necessary to fix the basic problem - as you say A HOLC plan would purchase the mortgage loan (those "toxic assets" banks hold) at current value and then provide the relief the homeowner would need but
80% of the mortgages are securitized and it is not possible to purchase them at less than their original face value without going back and getting consent from all the bondholders.  And purchasing them at their face value is a windfall to the "bad guys" who hold the securities backed by those mortgages.  I did see a creative legislative solution to this problem a month or so ago and I wish I could remember where.  But so far there is no consensus on the legislative fix for that problem.  

Reading the summary, my head is in danger of exploding from the realization that this is going to create another massive bureaucracy, and with incentive payments to servicers and homeowners, I can see the opportunity for gouging the government - you know, our old friends waste, fraud and abuse.

If it's done right and done well, it will be a great help.