October 8th, 2008
12:00 PM ET
6 years ago

McCain mortgage plan shifts costs to taxpayers

Sen. John McCain
Sen. John McCain

NEW YORK (CNNMoney.com) - Under a mortgage rescue plan announced at the debate Tuesday night by Senator John McCain, much of the burden of paying to keep troubled borrowers in their homes will shift to taxpayers.

McCain's original plan called for lenders to write down the value of these mortgages, and take those losses. McCain unveiled the new $300 billion plan in response to the first question of the debate.

He said, "I would order the Secretary of Treasury to immediately buy up the bad home loan mortgages in America and renegotiate at the new value of those homes, at the diminished values of those homes, and let people make those – be able to make those payments and stay in their homes."

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Filed under: Candidate Barack Obama • John McCain
soundoff (428 Responses)
  1. Angel09

    Which is it, John? Free market solutions or government-imposed solutions?

    You seem to want both, yet they are opposite extremes on the continuum.

    I'm not really sure you have a clear understanding of any of this economic/financial stuff. At least, it doesn't seem so based on what you say.

    October 8, 2008 12:40 pm at 12:40 pm |
  2. Paul O Connor

    I have enough trouble paying for my own mortgage!!

    I WILL NOT PAY OTHERS TOO!!!

    October 8, 2008 12:41 pm at 12:41 pm |
  3. Kurt

    My taxpaying neighbors will pay for my mortgage and renegotiate the principle and interest? Sounds great! Wonder how my neighbors will like that? Will they have my name? And I thought the country was broke!

    October 8, 2008 12:41 pm at 12:41 pm |
  4. Mccain is a liar

    I thought we already did this for 700 billion+ ? Wow this guy is smarter than all of us...those of you voting for Mccain god help you and your poor family that may have to endure another 4 years of an idiot running the country.

    October 8, 2008 12:42 pm at 12:42 pm |
  5. Eric

    If they were to do this it should be only for people who were responsible and got houses they could afford but their values went down through no fault of their own. People who but 300k houses on 100k budgets deserve the foreclosure.

    October 8, 2008 12:43 pm at 12:43 pm |
  6. JACKED-UP-POLITICS, FLORIDA

    QUESTION FOR CNN: WHY DID IT TAKE OBAMA BRINGING UP THE AIG 400k+ SPENDING SPREE BEFORE ANYONE AIRED THIS!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

    GET ON THE JOB

    October 8, 2008 12:43 pm at 12:43 pm |
  7. HunkyForJustice

    Republicans suck when it comes to the economy. That's a FACT!

    October 8, 2008 12:43 pm at 12:43 pm |
  8. tulsa

    So Johnny, shifting the responsibility of paying for this away from the LENDERS and laying the burden on the backs of the TAXPAYERS?

    Thanks for helping the working man.

    I think I'll vote for "That one".

    October 8, 2008 12:44 pm at 12:44 pm |
  9. Glenn

    They should have bought out the bad loans instead of bailing out scrupulous CEOs and other financial management personnel. At least the interest rates would have become fair and mortgage bankers would have still been receiving money toward the loans. And, those lenders would have been able to use the difference in those original loans vs the newly revised ones on their tax filings as, losses. Everyone would have won.
    Additionally, an Bill should have been written and voted in that would have brought these jerks to the courtroom for causing this whole financial mess, thereby holding them responsible for their irresponsible and greedy, self-serving behavior. All those bonuses should be returned immediately via court order.

    October 8, 2008 12:44 pm at 12:44 pm |
  10. Ryan Kr

    Angry John McCain and six packs Sarah Palin-that one is our president and love and respect his intelligence.

    October 8, 2008 12:45 pm at 12:45 pm |
  11. Brendan H., San Antonio, TX

    Of course it shifts it to the taxpayers – that's what the GOP does! Shifts the responsibility to anybody but the real culprits – GOP-backing, big business!!!

    October 8, 2008 12:45 pm at 12:45 pm |
  12. Danny from Phoenix

    Wow.. so much for running on small government and anti-socialist values.. way to go John. You scum.

    October 8, 2008 12:45 pm at 12:45 pm |
  13. Toni

    Um, why does this idea look so familiar...

    October 8, 2008 12:45 pm at 12:45 pm |
  14. Beverly, NYC

    Thanks but no thanks for the new plan McCain. I have no interest in bailing out one of your rich cronies or some idiot who makes $50,000 and thought they could afford a $500,000 house. Was this bright idea on a starbucks cup?

    October 8, 2008 12:45 pm at 12:45 pm |
  15. Candy West Virginia

    Wow. Just wow. Mccain has NO solutions for average americans, he never did. He thought he could get by with choosing palin. Don't know how you rethugs thinking of voting for him can afford him because after you get taxed with his health plan and those mortgages too, will you have any money left?

    October 8, 2008 12:46 pm at 12:46 pm |
  16. Eric

    I don't want to hear repubs call Obama a tax-and-spend liberal from this point forward...

    October 8, 2008 12:47 pm at 12:47 pm |
  17. pat C.

    ISN'T THAT WHAT THE GOVERNMENT IS DOING NOW BY BUYING ALL THE BAD DEBT AND RESELLING IT BACK TO THE PEOPLE?
    MCCAIN TALKS IN RIDDLES. IS HE FOR OR AGAINST GOVERNMENT INTERVENTION?

    October 8, 2008 12:47 pm at 12:47 pm |
  18. Darrel from Denver

    What about those of us who have been living within our means, paying our mortgages and other debts all along, and simply doing our best to get along while our leaders in business and government sell us out?

    I want my mortgage paid, or renegotiated to a lower rate as well. I guess I am out of luck in McCain's world.

    I am voting for "THAT ONE"

    October 8, 2008 12:47 pm at 12:47 pm |
  19. bill pike

    and we thought a gift was coming our way because we pay our bills on time????? bush is alive and well in mccain land.

    October 8, 2008 12:47 pm at 12:47 pm |
  20. Frank,MO

    Ha Ha ! Where are the Republicans now ? Anybody cheerleading here for your leader ?

    October 8, 2008 12:47 pm at 12:47 pm |
  21. Kelby from Houston, TX

    WoW, I know CNN wants to appear un biased in this lopsidded election, but today, they are really pouring it on McCain. Don't get me wrong, I know that there is a lot of constant consistently bad news coming from their side, and their ideas and campaign practices do indeed suck, but wow, There has been nothing on the ticker that puts McCain in a positive light.

    And yeah, that mortgage plan totally puts the screws to the taxpayer, But most GOP ideas do.

    VOTE FOR DEMOCRATS
    VOTE FOR OBAMA

    October 8, 2008 12:48 pm at 12:48 pm |
  22. JD in NC

    And how do we prevent such a thing from happening again?

    Use one of McCain's famous lucky charms?

    October 8, 2008 12:48 pm at 12:48 pm |
  23. Tony

    IT'S TIME TO WAKE UP PEOPLE, GET SERIOUS, FORGET ABOUT VOTING YOUR PARTY OR TRYING TO GET EVEN FOR HILLARY NOT BEING THE NOMINEE.

    HOW MANY PEOPLE OUT THERE, WHEN ALONE WITH NO ONE LISTENING OR WATCHING, TRULY BELIEVE THAT MCCAIN AND HIS DIMIWITTED RUNNING MATE ARE RIGHT FOR THE COUNTRY?

    EXCEPT FOR THE DIE-HARD KOOL-AID DRINKERS, I DOUBT THERE ARE MANY.

    MCCAIN AND THE GOP ARE IN DESPERATE AND IN FULL PANIC MODE. THEIR HEADS ARE SPINNING ON THEIR SHOULDERS TO TRY AND REPAIR DAMAGE TO THE JUGULAR OF MCCAIN'S CAMPAIGN.

    TOO LATE!

    October 8, 2008 12:48 pm at 12:48 pm |
  24. Jeffer65

    Isn't something like this in the bailout bill? I don't understand where he is getting his ideas. I pay my mortgage on time every month and hopefully can continue to do so. Why should I have to pay for someone else's? I feel sorry for you, John McCain, your time has past.

    October 8, 2008 12:48 pm at 12:48 pm |
  25. Sarah.....and my last name isn't Palin!

    Three words OUT OF TOUCH!!!!

    Obama/Biden '08

    October 8, 2008 12:49 pm at 12:49 pm |
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