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. gerri

    We should take over the Federal Bank,as it is now, it is the bank that is taking us and our government over.Something smells fishy and both candidates know it.Wake up America before Paulson and his crew of thieves take over the world.

    October 8, 2008 12:59 pm at 12:59 pm |
  2. Georgia Gal

    Yep that's the way to get people to vote for you John ... make the taxpayers pay for it all. His healthcare plan will cost people money and will cut medicare and medicaid to pay the rest and now he wants us to pay for this.

    No deal, John, no deal!

    October 8, 2008 12:59 pm at 12:59 pm |
  3. Obama Biden '08!!

    Well, well, well...the truth finally comes out. McCain is all for helping out big business rather than 'middle income' Americans. I hope Americans are smarter in this election than in the past two!! I'm voting for THAT ONE as well!!

    October 8, 2008 12:59 pm at 12:59 pm |
  4. Bulldog

    McCain is full of it. How many times has he said "My friends, I know how to do it" but never tells us HOW. He says not to look backwards but in the same sentence says let's look at the record. What a HYPORCRITE.

    McCain and Palin make me sick to my stomach.

    If the radical Sean Hannity and Rush Limbaugh are desperate for these two to win you know they are bad for America. They were desperate for George Bush and Dick Cheney the exact same way in 2000 and 2004.

    October 8, 2008 12:59 pm at 12:59 pm |
  5. John

    It's over for the Old man and his Dumbell sidekick. Palin is a nut case and has an empty head.... Back to Alaska real soon.....

    McCain in the debate said he was going to do this and that but he has been on Capitol Hill for 26 years and protected the Republicans and The Croonies on Wall Street.He has done nothing at all..

    Bye Bye McCain... It's Over

    Obama ...Biden in The White House....09

    October 8, 2008 12:59 pm at 12:59 pm |
  6. Watermann

    As time is running out, the ideas are becoming more and more desperate. Never mind, let the taxpayers pay for it. It does not make much of a difference if the national debts are 10,3 or 10.6 Trillion. I did not expect that CNN is doing the fact check that quick and thereby fulfilling an ethical duty in journalism. Question is: how many voters read this and understand this?

    By the way, can anybody tell me how this Gov. of Alaska, Sarah Palin, has been elected to her office? In the early 80ties I paid 4 visits to her home state. At that time the Alaskan people seemed to be very strong, honest and...intelligent. But now.....

    October 8, 2008 01:00 pm at 1:00 pm |
  7. David Newport, OR

    Brilliant. How can ANYONE consider voting for this guy? And just what does he "propose" to cut in order to provide this money SINCE he has already stated he wants to "reduce" taxes? Oh...I get it...he wants to reduce taxes on the rich but leave those like me paying for it.

    October 8, 2008 01:00 pm at 1:00 pm |
  8. Fenarkleman

    As if we taxpayers are not paying for enough stuff that is not called "taxes," but actually ARE TAXES.

    By the way, what was the deal with Tom Brokaw, huh? If there was a loser in last night's debate, it was that guy. Man, he's really lost it. Time to turn Tom back out to the pastures of South Dakota.

    October 8, 2008 01:00 pm at 1:00 pm |
  9. Tim in NC

    Wow, I never thought I'd see the day where a major Republican like McCain would make these sort of bold moves to undermine the "free market system" they so dearly love and believe in.

    Oh oh, does that mean I own part of a bailed out home, cause I call the master bedroom!

    October 8, 2008 01:00 pm at 1:00 pm |
  10. John

    I think McCain has just flipped to Hillary Clinton proposal no one liked it when she put it forward in the Primaries.

    This will loose the fiscal conservatives that Palin was taken on to energize.

    McCains campaign is in total meltdown

    October 8, 2008 01:00 pm at 1:00 pm |
  11. Rob indetroit

    John MCcain is slick real slick, he thinks people are dumb enough to by that crap !, MCbush is so desperate to stay in the race that he will say any-thing to get elected, talk about putting lipstick on a pig.

    October 8, 2008 01:00 pm at 1:00 pm |
  12. JAC

    Why should people (me!) who didn't buy a home because they knew they couldnt afford it have to pay for idiots to have a house! Why not take that money and help the smart people get a home! geezz ... i am tired of living frugally just to have the govt come take what little i have saved.

    October 8, 2008 01:00 pm at 1:00 pm |
  13. Foreign Born US Citizen

    McCain will not raise TAXES because he doesn't want to share his wealth to the American people. Now, for average Americans who drink beer, they need to cut down because they are only giving their money to CINDY McCain–BEER BUSINESS.

    October 8, 2008 01:00 pm at 1:00 pm |
  14. ShawnW

    Listen to Mitt Romney. He believes the $300B will come from within the bailout money. If they don't pave the nascar tracks are research wool or wooden arrrows they have already closed over half of the $300B. If the money is already there, at least McCain will actually use it where we were told it would go. But why think that's a possibility. You all are too busy talking about the "that one" comment.

    October 8, 2008 01:01 pm at 1:01 pm |
  15. Charlie

    What does McCains plan do for the many Americans who have budgeted responsibly? The rescue bails out the mortgage companies and now he wants us to bail out the people who spent beyond their means as well. The impact will be that we will all need to be bailed out. Who has the bucket?

    October 8, 2008 01:01 pm at 1:01 pm |
  16. Lisa



    October 8, 2008 01:01 pm at 1:01 pm |
  17. Gary

    What happened to no governmental intervention??

    October 8, 2008 01:01 pm at 1:01 pm |
  18. Darrell

    After AIG spent $400,000 dollars of taxpayer money on a spa trip, I'm not thrilled about more bailouts. The government needs to do a better job directing where our money goes.

    McCain/Palin, instead of trying to get a lynch mob going against Obama, maybe you should put country first and start watching our money.

    October 8, 2008 01:01 pm at 1:01 pm |
  19. FactCheck

    So he wants government to stay out of people's way but at the same time, expects us to pony up our hard earned money to pay for those folks who brought homes that were well beyond their means? He must be taking policy lessons from Palin.

    October 8, 2008 01:02 pm at 1:02 pm |
  20. JB

    What will Obama do about homeowners losing their homes. He has not metioned a plan yet about what he'll do to help homeonwers. At least John McCain metioned a plan to help those that need the most help. Also John McCain is not sitting around saying "present" in these tough economic times. John McCain is exploring solutions to the economic crisis, not just campaigning and waiting around for others to work it out.

    October 8, 2008 01:02 pm at 1:02 pm |
  21. Tim in NC

    SO what does that bring the total on the bailout to:

    300 B
    700 B
    +/- 250 B for AIG, Fannie and Freddie, and a couple others...

    Yes, that is a completely responsible fiscal policy, add another 1.25 trillion to our national debt!


    October 8, 2008 01:02 pm at 1:02 pm |
  22. Republican Base Voting OBAMA

    I knew this when he made the comment and this is not going to work.
    700 Billion dollars already and we still can't get a grip of this problem. What is next the sky is falling and we all need to bail it out as well.

    Obama/Biden 08/12

    October 8, 2008 01:03 pm at 1:03 pm |
  23. LB

    No, No, NO. Since my job is to close on real estate transactions, let me give you a little insite on how the lenders are working this so called Hope for Homeowners plan. The lenders are telling the borrower that the only way they quality for this program is to not make their mortgage payment for at least the next 3 months. After 3 months of not making their payment, give us a call to discuss refinancing. But after 3 months of no payments and then 3 or 4 months of negociating with the lender, the homeowner is told that since they haven't made any payments for 6 months, their credit rating is now shot and sure we as the lender will be more than happy to do a refi at 11% (the original interest rate was 6%), thus now the homeowner can not afford to make double their housepayment...Foreclosure is all that's left.

    October 8, 2008 01:03 pm at 1:03 pm |
  24. McCain/Palin - Deceiving the American People

    Obama floated this concept back on 9/23 and 10/1, but apparently decided against it, because it was too much of a burden on American Taxpayers

    October 8, 2008 01:03 pm at 1:03 pm |
  25. Gebeorge Napalotino

    Mr. McCain is thoroughly confused about the economics of the current crisis. His so-called mortgage bail out plan reflects his his erratic and impulsive behavior - jumbing from one "solution" to another without thinking it through. Much of what he is "proposing" is already in the $700 billion rescue plan, first proposed by Hilary and then articulated by Obama two weeks ago.

    October 8, 2008 01:04 pm at 1:04 pm |
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