October 8th, 2008
12:00 PM ET
10 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."

Full Story

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

    So what the H3LL is PMI (private mortgage insurance) for???

    I didn't get an ARM or mortgage to 120% and I pay PMI. SO I get no help, my PMI is not covering these defaults AND I'll pay higher taxes to let people readjust their mortgages so they have less debt.

    MOST of America is in MY position...NOT those freeloaders that this kind of bailout will "help".


    October 8, 2008 02:34 pm at 2:34 pm |
  2. Sam

    KG...be specific...what in gods name are you talking about? what illegal tactics is Obama using? You sound like Palin with your lack of specifics.


    October 8, 2008 02:35 pm at 2:35 pm |
  3. Proud to be American

    John McCain is a flop flopper and will say or do anything to win. I don't trust him at all...

    Obama and Biden 2008

    October 8, 2008 02:36 pm at 2:36 pm |
  4. Dave in Houston

    Thanks, Senator McCain, for adopting Barack Obama's idea for using the bailout money to directly to help homeowners stay in their homes.

    Are you sure you should be running against him, or supporting him? How 'bout it, John, why not be bi-partisan and cooperate with the Obama Administration on saving troubled homeowners?

    October 8, 2008 02:36 pm at 2:36 pm |
  5. Nancy

    McCain has become an angry man full of hate and unfortunatly, will stop at nothing to get his way.

    October 8, 2008 02:37 pm at 2:37 pm |
  6. kalkrish


    October 8, 2008 02:38 pm at 2:38 pm |
  7. Chloe

    An angry man full of hate that is stopping at nothing to get his way.
    He's now offically dangerous.

    October 8, 2008 02:38 pm at 2:38 pm |
  8. Justin

    Where else would the money come from?

    October 8, 2008 02:38 pm at 2:38 pm |
  9. Voting on the ISSUES

    If my vote decides if I will have a job to go to every day. A home to go to every night. A chance to afford to send my son to college. Then I will cast my vote for change. I will be voting for the person who has the best chance of improving my life. I had been holding out on my vote and had remained undecided until I considered the issues that really matter to me most..........My Family. Forget party. My family comes first. If this Obama guy is the one then so be it. I will stand behind him to help make life for me and my family better.

    October 8, 2008 02:39 pm at 2:39 pm |
  10. please

    KG –
    besides saying Obama has used all these illegal tactics, why don't you give examples? I'm waiting...................................................

    (Bye the way, there is some investigation going on regarding Pallin, even though she won't participate or acknowledge it, it's still going on)

    Oh yah, still waiting for your examples. And you were never a democrat, nice try

    October 8, 2008 02:39 pm at 2:39 pm |
  11. MEP

    To Emil,
    That figure( $300B) is not mentioned specifically on the bailout bill, but the authority to use the funds to pay off mortgages IS in the bail out plan's description of authorized actions. Check it out. One of the consumer protections. Or did you miss Keith Olbermann's post debate discussion last night on this very point?

    October 8, 2008 02:40 pm at 2:40 pm |
  12. stocks fall

    everything McCain says is a lie

    October 8, 2008 02:40 pm at 2:40 pm |
  13. Daniel - GA

    I hope everyone is listening to John McCain right now in PA. He's an absolute joke. The very things he blames Obama for doing, he's doing himself!

    "Obama sure does look in the past for blame..." The next words out of McCain's mouth are "Obama is at fault for this or that and everything else."

    When you grow up McCain maybe people will start listening to you.

    October 8, 2008 02:40 pm at 2:40 pm |
  14. Rob indetroit

    I was just watching Mcbush's rally in pennslyvania,i heard abunch of liars ,& saw a bunch of loser's.

    October 8, 2008 02:40 pm at 2:40 pm |
  15. Lucy

    An angry, smart, used up WOLF in sheep's clothing. Give it up McSame to "that one". And your little girl, McMooseBushMeatKiller, too.


    YES WE CAN!!!

    October 8, 2008 02:41 pm at 2:41 pm |
  16. Careful what you say

    My vote goes to "That One"

    October 8, 2008 02:43 pm at 2:43 pm |
  17. As the 'Paign Turns

    Florida Voter – Yup. That is exactly what he said last night. I have a house I cannot sell due to the lousy real estate market. We've owned it for nearly 20 years, it's now 25K below appraisal, it's still not selling. Do ya think this will help me? Nah... just the folks who took on more than they could manage. And tho they make promises that no "liars" will get the $, look what happened with AIG and their bailout – $400K in spas, holidays, rooms, travel, food ...

    Better look to Obama for some ethics and "straight talk".

    October 8, 2008 02:44 pm at 2:44 pm |
  18. neither one

    Neither of these candidates have ANY fiscal responsibility.

    They feel the government has to help us. They need more money do provide this help. I don't want the government to "help" me find a doctor, or to "help" me invest my money, or to "help" me by taking my mortgage, or to "help" me drive an ethanol burning vehicle, or to help me with carbon credits.

    These two parties have destroyed this country. You Democrats and Republicans can point fingers at each other all day long...and you know what?? YOU'RE BOTH CORRECT!!! You two have messed everything up...maybe in varying degrees, but you are BOTH RESPONSIBLE.

    It's time people wake up and stop falling for the lies that both parties are feeding you. If you vote for McBama this fall, we will all have bigger problems.

    October 8, 2008 02:44 pm at 2:44 pm |
  19. Debby

    Well Obama doesn't have a plan and I don't see where us as taxpayers will be bailing this out either. The mortgage crisis is going to get worse if we they sit back and twiddle their fingers rather than at least trying something. The problem stems to Fanny lending to all these people over their means. This is Barney Frank and all who approved this. At least McCain has a solution and it might just stimulate home sales down the road again. Something is better than nothing. Obama and McCAin should have nixed the 700bill bailout, its not stimulating investors because they don't want to be taxed to death on capital gains so they are waiting to see who is elected. If Obama gets the Presidency, we may have a bad wallstreet for a long time with his tax proposal.

    Obama just doesn't get that even though a small business owner may make less than 250. in paycheck, his/her business revenue can be over 250., which would mean higher payroll taxes, and if your a inc. higher corporate taxes. Small business's employ alot of local towns people especially if you are an hour or more from a big city.

    October 8, 2008 02:45 pm at 2:45 pm |
  20. David

    Part of the problem of this current bailout plan ( I refuse to call it a "rescue". please.) is the fact that the Treasury Dept wants to continue to keep prices inflated. How long do they think they can keep this propped up? There is going to be a big burst of the bubble, folks. They are gearing up for it.

    October 8, 2008 02:46 pm at 2:46 pm |
  21. Heidi

    McCain and Palin are running on fumes.....and sticking the whole way.

    October 8, 2008 02:46 pm at 2:46 pm |
  22. karla from rancho cucamonga ca


    October 8, 2008 02:47 pm at 2:47 pm |
  23. Rob indetroit

    I thought the bail-out was buying peoples morgages,H'mm sounds like MCbush is trying to hood-wink the American people. as for MCmoose just ignore her.

    October 8, 2008 02:48 pm at 2:48 pm |
  24. Frank Glendale Ca

    published reports looking at list of contributions from "directors, officers, and lobbyists for Fannie Mae and Freddie Mac" for the 2008 campaign cycle. That list — using figures from the Federal Election Commission — shows McCain receiving $169,000, while Obama received only $16,000.

    VERDICT: Misleading. No donations actually came from the companies. One method of measuring employee contributions does put Obama second overall, but another, for the current election cycle, shows McCain receiving significantly more.


    October 8, 2008 02:48 pm at 2:48 pm |
  25. DEKE

    Trust and respect just went out the window. He's not the John McCain I thought he was. My vote is going to OBAMA.

    October 8, 2008 02:48 pm at 2:48 pm |
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18