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."

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Filed under: Candidate Barack Obama • John McCain
soundoff (428 Responses)
  1. Mike in Sacramento,Ca

    It won't happen....wishfull thinking at best.

    October 8, 2008 12:53 pm at 12:53 pm |
  2. mama4obama

    There are 2 sides to every story. The mortgage crisis is a combination of people losing their jobs and unable to make ends meet since the job market SUCKS! and then there are those who have no problem running up more and more bills with credit lines they clearly cannot afford. I say help those who did it right and got screwed by the current economy through loss of jobs and let the others sink. I also think that the CEO's in charge should have to pay back the millions they got for stinking up the place.

    October 8, 2008 12:53 pm at 12:53 pm |
  3. JJ

    When I heard this coming out of his mouth last night, I stood up and yelled at the TV. Who the heck do you think is going to pay for this? Yes, the taxpayers.

    Thanks but no thanks!

    October 8, 2008 12:53 pm at 12:53 pm |
  4. BatCat05

    McCain said "I would order the Secretary of Treasury to immediately buy up the bad home loan mortgages in America ..." McCain must be on medication, isn't that same strategy that got the financials in this trouble to begin with? Bad for the common man, Bad for the economy and BAD FOR AMERICA. McCain, you only pushed "That Man" closer to the presidency. OBAMA/BIDEN that's the RIGHT CHOICE FOR AMERICA!

    October 8, 2008 12:53 pm at 12:53 pm |
  5. Maggie from Virginia

    Can we please elect the smart guy this time?

    October 8, 2008 12:54 pm at 12:54 pm |
  6. Ken from Michigan

    Why should I as a tax payer be responsible for the bad mortgages that banks made to people who seems to have not been able to pay those payments in the first place.

    I just lost 15 thousand dollars of my retirement account so the Wall Street suits could spend a few days at a spa to reduce their "stress" and now I'm supposed to pay off someone else's bad home loan!?

    There's something awfully the FROCK wrong here. I'm mad, mad as hell and I can't take much more of these "bail outs". How about bailing me out of my financial crisis for God's Sakes!!!

    October 8, 2008 12:54 pm at 12:54 pm |
  7. don

    In one sentence McCain says he would freeze government spending, and in his next sentence he wants to buy up bad mortgages. He is talking out of both sides of his mouth, pandering for any vote he can scare up! He is truly becoming shameful and scary!

    October 8, 2008 12:54 pm at 12:54 pm |
  8. McCain/Palin - Deceiving the American People

    Nice Job John. You took Obama's suggestion from 9/23 and 10/1 campaign events and PRESTO! CHANGO! it's now YOUR idea. You are a silly, silly old man....

    October 8, 2008 12:54 pm at 12:54 pm |
  9. Texun

    McCain is just another one of those spend-and-run-up-the deficit Republicans.

    October 8, 2008 12:54 pm at 12:54 pm |
  10. smokesignals

    No matter who ends up paying for this mess, the Republicans are responsible for it and it comes waaaay too late for me. That's the sad part. None of the homeowners who have already been forced to sell their homes at ridiculously lower prices than their mortgages or who have already been forced out of their homes due to foreclosure and bad loans from Countrywide, etc. will be helped at this point. We just lost out completely. What programs are there for us?

    October 8, 2008 12:54 pm at 12:54 pm |
  11. Amy

    Unlike McCain, I don't have the money to pay for every bad mortgage decision in America, nor should I have to!

    I have lived in my current home for 17 years. I will pay off my mortgage in 2022. Why should my family have to pay for the mortgages of others? I have kids to put through college. I have gas to buy. I have insurance premiums to pay. And last week I, along with every other American, took on the debt of Wall Street.

    No way! No McCain!

    October 8, 2008 12:55 pm at 12:55 pm |
  12. Jann in Denver

    Of course he would like to shift the burden to the tax payer. Thats what McCain and his Republican counterparts are all about. Give breaks to the rich and a kick in the pants for the rest of us.

    The choice for Obama in November is as clear as day.

    October 8, 2008 12:55 pm at 12:55 pm |
  13. McCain/Palin - Deceiving the American People

    Nice Job, McCain. Is there anyone in your base you have not alienated yet?

    October 8, 2008 12:55 pm at 12:55 pm |
  14. Dallas, TX

    OBAMA is going to raise your taxes folks, SO if you like paying more taxing then vote for him!

    We'll all feel the pain later and then everyone will be belly-aching that they have NO money!

    SO sad to see people being duped by this candidate!

    Wake up folks!

    McCain/Palin '08!!!!

    October 8, 2008 12:56 pm at 12:56 pm |
  15. Crucker

    This is just nuts. Wow, look at how this works. I get a responsible mortgage and I bust my butt to pay it. However, i cant afford to save for my retirement or college for my kids because I am paying my neighbors mortgage. Great plan!

    October 8, 2008 12:56 pm at 12:56 pm |
  16. Ken, Pisgah Forest NC

    I was absolutely astounded when I heard this last night. He is asking the government to pay for the difference between the original sales price and the new appraised price for people's homes. Since when should the government be responsible for the risk any of us have in our investments? This is between the mortgagee and the financing company.

    The current financial meltdown is due old fashioned supply and demand, and there is an oversupply of housing, so we need to keep people in their homes to minimize the oversupply. Obama wants to do this through the courts, where judges have the power to force creditors to rewrite mortgage agreements. McCain wants to have the government eat the losses.

    John, when are you going to come to your senses? Do you not get it? God help us if you win next month.

    October 8, 2008 12:56 pm at 12:56 pm |
  17. Brian

    McCain doesn't know what he's doing or what he stands for anymore.

    October 8, 2008 12:56 pm at 12:56 pm |
  18. Jack

    The biggest concern I have about McCain's plan to buy up and renegotiate all the bad mortgages is what happens to those of us who took on responsible mortgages, did our research, purchased within our means?

    The value of my home has dropped, so would I get this benefit even though I got into a fixed mortgage with a decent rate? If you do it for some, don't you have to do it for all, and the treasury even afford something on that scale? What constitutes a "bad" mortgage under the plan?

    Hey, while we're at it why don't we require the SEC to buy up all the bad investments and renegotiate those? You know, the value of my wife's car plummeted shortly after we purchased it. Can that loan be bought back and renegotiated, too?

    While McCain's plan may sound enticing to some on the surface, there are serious problems with it.

    October 8, 2008 12:56 pm at 12:56 pm |
  19. Chris

    Hey, I pay my mortgage on time and have had to sacrifice alot to be able to do so. Between bills and everything, I have a total of maybe about 100 bucks left over each month for entertainment or savings. But I don't qualify for this program because I'm responsible about my budget? I'm sorry, but I absolutely refuse to pay extra taxes and lose out on the small amount of pocket money I have each month so that some irresponsible jerk who works a McJob can afford to stay in his $400,000 home. We need a real solution here, not some half baked scheme by McCain to win him votes.

    October 8, 2008 12:56 pm at 12:56 pm |
  20. Marie

    So now Senator McCain wants to tax my healthcare insurance premium, add millions to our tax bill to refinance mortgages and continue to spend 10.5 billion dollars a month in Iraq. When are the conservative Republicans going to wake up and see what he is doing. I'm not afraid of Obama, I'm terrified of McCain!!

    October 8, 2008 12:57 pm at 12:57 pm |
  21. Penny

    Hmmmmmm – – – I just continue to get more and more disgusted with John McCain! This does not surprise me, coming from the "know it all" and "end all" of our generation – – – according to McCain himself. I'm gauging him not only by his proposed and current policies, but by his disgusting behavior. He acts as if he is entitled to the presidency just because he wants it and has been in the senate "forever"! FOREVER has certainly caught up with us these days, hasn't it!?! I am appalled with his unprofessional and unpresidential behavior toward Senator Obama! Senator McCain – – – – – – I wouldn't vote for you and "Ms. Josephine Six Pack" if you were the last two people on this Earth! When the election is done and over and we have elected "President Obama and Vice President Biden", it will be good riddance to you and sweetcheeks! Shame on you both!!!


    October 8, 2008 12:57 pm at 12:57 pm |
  22. Which one? - That One

    Based on what I have seen from John McCain, it would be totally irresponsible of me to conclude that he could ever be the architect of a great idea. This guy hasn't had a bright idea since he decided to stay in the Vietnam prison camp. Even if he uses all the money his wife has he still couldn't buy a clue.

    Idealess, clueless, and backed by an illiterate pittbull from Alaska – the recipe for the continuation of a downward in America.

    Based on the transcript from the questions she answered last night i think the scampaign needs to re-enforce the muzzle on the pitt.

    October 8, 2008 12:57 pm at 12:57 pm |
  23. AZ Senior

    Wasn't that the intent of the Bail Out plan? Buy up the toxic mortgages and sit on them? I am so confused -- or is John McCain?

    October 8, 2008 12:58 pm at 12:58 pm |
  24. Lisa


    October 8, 2008 12:58 pm at 12:58 pm |
  25. Maggie from Virginia

    Did anyone notice that people wanted to take pictures with Baracka and not McCain? Maybe that's why he and Cindy was in such a hurry to leave. Barack and Michelle stayed for a long time after the debate mingling with the crowd. Not McCain, he couldn't wait to leave. I don't think anyone noticed that he was gone.

    October 8, 2008 12:58 pm at 12:58 pm |
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