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. Lisa




    October 8, 2008 01:04 pm at 1:04 pm |
  2. Rodger

    McCain want to spend another 300 billion over and above the just enacted "Rescue" plan....and yet cut spending...how?

    October 8, 2008 01:04 pm at 1:04 pm |
  3. John, Catholic

    As long as they do the same for me. I have kept up my payments and have not missed a single one. It is unfair for them to refinance at the new home values for people who missed payments. My home value decreased also and if anything I think I should be rewarded for not defaulting or missing any payments by having my mortgage rate and amount readjusted to the new depreciated value of my home.

    October 8, 2008 01:04 pm at 1:04 pm |
  4. Mike In Albany NY

    Four more years of Republican financial parties and there won't be any america left to save. At least I can say that I lived in one of the greatest countries on earth before right wing radicals destroyed it.

    "That Guy" '08

    October 8, 2008 01:04 pm at 1:04 pm |
  5. Southern view

    The lenders are responsible for the fraudulent lending practices that contributed in large part to this mess. The adjustable rate mortgages were the biggest problem. The print is very small on the bottom line and a lot of seniors can't see it and a lot of other borrowers, maybe most of them, don't understand it. The radio commercials for the phony mortgage bargains and solutions continue today, between the news reports of the economic collapse.

    McCain, with his 13 houses, really doesn't get it. Why should he? He married a rich lady, so it's not his problem. No wonder he shifts the tab to taxpayers. McCain should sell 12 of his houses and give the money to the Federal Reserve to help pay for the bailout.

    October 8, 2008 01:05 pm at 1:05 pm |
  6. Patriot from GA

    Question: Who is the riskier, scarier candidate?

    Answer: John McCain.

    Question: McCain ask "Who is Barack Obama?"

    Answer: He would be the man who is kicking your tail – THAT'S who he is.

    October 8, 2008 01:05 pm at 1:05 pm |
  7. foster


    While the rest of America was doing their duty and sucking their equity out of their home's inflated value and then blowing it – My family does the "unpatriotic" thing of refinancing to a 15 yr fixed to have my home paid off when my daughter graduates from high school.

    Now McCain wants me to "help" those who blew it? I feel like a sucker – I could have blown it, bought a bunch of crap and ended up with my neighbor footing the bill.

    All this while he still supports tax cuts for the wealthiest americans!

    This is so Left that it's approaching the right from the other side!

    October 8, 2008 01:06 pm at 1:06 pm |
  8. Rashawn

    LOL....Now he's going to buy me a house.....Great! 300 billion plus 700 billion and the stock market keeps going down...GREAT! McCain proposes to stop big government....300 billion dollars...? LOL

    October 8, 2008 01:06 pm at 1:06 pm |
  9. Jamie

    I'm so glad McCain busted out with this brilliant idea during a debate watched by 42% of American households. More just like that, John! Thanks.


    Someone voting for That One

    October 8, 2008 01:06 pm at 1:06 pm |
  10. Holly

    OK, here we go again. So I am going to have to pay for the mistakes of wall street AND irresponsible buyers. I would love to own a bigger house too – BUT my BUDGET says no. I made the RESPONSIBLE choice. Why can't people renegotiate the terms of the loan – not the amount. If we renegotiate the actual value, the local taxes and property taxes (which entities like school depend on it) will then suffer and we will be upping our taxes. There is no win here – let's just remember there are consequences to our actions and government is not there to bail out bad decisions we as consumers make!

    October 8, 2008 01:07 pm at 1:07 pm |
  11. Nic

    This proposal is the epitome of irony. I'm sure conservatives dropped their jaws when they heard this. The GOP is supposedly all about fiscal responsibility and "less government" and McCain borrows an idea, which is partially included in the current bailout plan, that is completely opposite (some say even more liberal than most democrats incl. Obama) to what they preach. People might as well write checks to their neighbors, many of whom who've spent beyond their means, and call it day!

    October 8, 2008 01:07 pm at 1:07 pm |
  12. ME

    In response to the age health ticker....I'd rather question a man's age and health rather than have to question his INTEGRITY and HONESTY.

    October 8, 2008 01:07 pm at 1:07 pm |
  13. AM

    Isn't this what the $850B bailout law already does ?

    Since none of my comments ever make this board, I'll say it for you...your comment are awaiting moderation.

    October 8, 2008 01:08 pm at 1:08 pm |
  14. Which one? - That One

    when you tally the figures for who received the most money from Fannie Mae it goes as follows

    Contribtuions to mcCain $169,000
    Obama $127,000
    $ 16,000
    ---- -----
    $169,000 $143,000

    John McCain was correct. The amount of money Obama received for his campaign was second only to what he received.

    October 8, 2008 01:08 pm at 1:08 pm |
  15. Democrat in Red State

    Johnny, do you plan to fork up the money for this one? Maybe cash in the cost of your wife's outfit at the convention. How about not collecting that little social security check you are getting each month? Or better yet sell off a few of your houses and cars. Hmmmm...probably still won't be enough. Well guess what, I am not paying for it and the rest of us sane people aren't either.

    Go home Johnny Boy!

    I'm voting for "That One!"

    October 8, 2008 01:08 pm at 1:08 pm |
  16. Rich in Seattle

    Okay, this is just getting silly.

    I have a good credit rating. I got a modest house that I could AFFORD on my salary. My job is laying off people, who knows if I will be laid off or not. Yet I know that I will be okay and my house will be okay because I never got a mortgage that was way out of my ability to control.

    So why then, are people who got houses they couldn't afford, going to get a bail out when people like me, who may lose their jobs, have been responsible, get nothing. Here is the thing, I don't want anything given to me. I worked hard to get where I am and I don't expect a handout from the Government. Neither should these slimy companies that gave out these loans.

    Is McCain even a Republican anymore? Does he even know what he is? Not a Mavrick that's for sure.

    October 8, 2008 01:09 pm at 1:09 pm |
  17. Wendy

    I think it's a bad idea...why reward those who made bad decisions by lowering their outstanding mortgage amounts? What about my two mortgages, which I have always paid on time? My lender tells me that my house is worth less now than when I bought it six years ago. So, will my mortgage be reworked to reflect my home's new value? I think if you do it for one person, you have to do it for all.

    This seems like just the kind of thing that the Republican base has been railing against since the beginning of time. What happened to "individual responsibility"?

    October 8, 2008 01:09 pm at 1:09 pm |
  18. MurphyMorseJohnson

    McCain Republicanomics like Cheney and Bush's eight years continue to break the backs of every American taxpayer with the exception of the filthy rich. The McCain rationale is to offer the CEO golden parachute people another $700, 000 tax break per CEO. Another McCainian brain storm is to offer health insurance tax credit to $5000 while insurance costs $12,000. When you're married to an heiress of $100 million, don't know how many houses you own, and drive imported cars, you can best understand the foregoing McCanian trickle down economics.

    October 8, 2008 01:09 pm at 1:09 pm |
  19. Mike In Albany NY


    October 8, 2008 01:10 pm at 1:10 pm |
  20. Sharon Kitchen

    first-the lenders were to pay
    next – the homeowners/or I should say the folks that have or will loose their shelter have to pay.......which is it.......do you even know what you have as a plan? Do you even have a plan? does your campaign all agree to whatever plan it is on a certain hour? Things change so often around you it is getting very difficult to tell what you mean.....or think.....
    folks that can not afford to pay high cost I guess can start to move in with you and all your properties....would this be right. They have to go somewhere. I know tents on all that land.......that will work.....but you might want to check with the lady of the land first....since they are probably in her name......get her o.k. folks can google the address. oh sucks......maybe they just drop in..........

    October 8, 2008 01:10 pm at 1:10 pm |
  21. milo

    Shawn, there is no question there are earmarks in the bailout.

    But you're seriously suggestion there are 150 BILLION in earmarks?

    Stop being ridiculous, last year there were less than 20 billion in earmarks in the ENTIRE federal budget.

    October 8, 2008 01:11 pm at 1:11 pm |
  22. R

    Yeah, he will spend OUR money to buy OUR mortgages while he and all rest of "the rich" get richer and take elaborate vacations. And all this lieing and cutting down of Obama is pretty pethetic when you can't stand on your own credentials!!!

    October 8, 2008 01:11 pm at 1:11 pm |
  23. New Day

    Can someone remind McCain that he's the fiscal conservative and Obama is the tax-and-spend liberal?

    October 8, 2008 01:11 pm at 1:11 pm |
  24. Sorry John

    John McCain was is GOING WRONG. I don't understand. You started out your campaign so strong and confident. Now each and every day you seem to be more and more confused, erratic and not on your game. Even though I am not totally in favor of voting for Barack Obama. I must trust my instinct. Something in the back of my mind tells me that I can no longer trust your leadership. Come November, I will vote Demoratic for the first time in my adult life. Even though I don't have full faith in Barack Obama.......I DO trust and respect Joe Biden. I feel confident that Joe Biden will be the one to help change the direction this country is going in. Sorry John. My family can't afford anymore financial hardships. If the Dems can fix the country for the good of everybody I want to help make it happen for all of us.

    October 8, 2008 01:11 pm at 1:11 pm |
  25. Frank

    Another shot in the dark from a candidate who has lived in the dark for so long that he has finally gone over to the dark side.

    October 8, 2008 01:12 pm at 1:12 pm |
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