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. ME

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

    What about Obama's membership in Chicago's "New Party" in 1996? A Socialist Organization that his campaign has said he was NOT a member of, but a few magazines and the Party's own newsletter talks about the New Party's "member," Obama, winning his IL senate seat????
    Socialist party.....hmmmmm.....anyone willing to ask the campaign about this? And look into the magazine articles and newsletters????

    October 8, 2008 01:12 pm at 1:12 pm |
  2. kalkrish

    when obama saying some solutions,if at all, please do ask him the same questions and lets see how he is answering from where he is going to get the money qand how is he going to do? cnn waste of time ,better go back with obama and do some service for him and that will be better.

    October 8, 2008 01:12 pm at 1:12 pm |
  3. Michelle

    I start to wonder if anyone really knows the answer to our problems.
    I do know that Obama can lead us to the right path!

    October 8, 2008 01:12 pm at 1:12 pm |
  4. Heidi for Obama

    When McCain says he wants to make cuts and reduce spending, how can he possibly justify spending this kind of taxpayer money? Last night when Tom Brokaw asked him to prioritize energy, health care, and entitlement programs (Soc. Security, Medicare), he claimed he thinks "we can do it all" because "America is the best country in the world"...but failed to give any specifics as to how he could possible fix programs without taking in more taxes, let alone when cutting taxes.

    He can't have it both ways; this smoke-and-mirrors act is up, the American people are intelligent and insightful and are going to make an educated decision...not one out of fear.

    October 8, 2008 01:13 pm at 1:13 pm |
  5. ME

    Tim in NC...the 300b would be part of the 700b.....he wants to use the money for homeowners.

    October 8, 2008 01:13 pm at 1:13 pm |
  6. Schneider (I) - CA

    Total BS – there is no way we can afford this. As it is it will take 4 months of work for the average tax payer just to pay for the interest on the last 700 Billion bailout!

    Even a super rich politician like McCain can't comprehend how much money that is!

    Say you have a machine that prints out a $100 bill every SECOND!
    After about 3 hours, you have one million dollars.
    That machine would have to run continuously for 222 years in order to print $700 Billion.
    To print the additional $300 Billion he wants, that machine would have to run for another 95 years.
    That is 317 YEARS of constant printing just to pay the principal – not even touching the interest that would accumulate over 3 centuries!

    What the heck is this old man thinking?!?

    October 8, 2008 01:13 pm at 1:13 pm |
  7. A chicken clucks in Johns yard

    The Federal Reserve is a PRIVATE BANK intent on taking over our government and controling our people.

    October 8, 2008 01:13 pm at 1:13 pm |
  8. John in Ohio

    And here I thought Obama was the one all the brainless McCainiacs are deriding and decrying as a socialist. Lemme tell ya, McCain looks like a socialist to me. And I'm a social democrat, I'd know.

    October 8, 2008 01:13 pm at 1:13 pm |
  9. Tammy

    So let me see if I've got this straight. $700 billion plus for wall street, $300 billion for those with mortgages that have a higher balance than their home is actually worth, what do the rest of us get? Oh, thats right, we get to pay for it, we get $5,000 for a family healthcare policy that won't buy much of any coverage but we can buy it from another state even though its not likely that the hospitals and doctors in our state will cover it. Wow, what a great plan--NOT!
    What about my mortgage? I pay my bills, try not to live on credit cards, we feed and cloth 3 kids, we don't have cable, we don't have 2 SUV's plus the toys that go with it, we don't go out to the movies, dinner, etc., we don't live in a fancy house that is bigger than we need and we do it without dental, vision or prescription coverage! We also have high deductibles, copays, but not high enough to qualify for an HSA or a free program. So sign me McCain to pay for someone else poor choices! The man is out of his mind!
    Obama is the clear choice!!!

    October 8, 2008 01:14 pm at 1:14 pm |
  10. Roland

    McCain is a symbol of the failure of Republican leadership. Bush is the poster-boy. Palin is the center-fold. All of them need to be left behind as the rest of country gets back to re-creating the promise of the American Dream which these crooks have stolen from all of us.

    That one for President '08!

    October 8, 2008 01:14 pm at 1:14 pm |
  11. Jeff


    First debate: How about a spending freeze?
    This Debate: I have a plan...to spend 300B to buy mortgages.

    I can't wait for debate 3!

    Case Closed!

    Obama/Biden 08

    October 8, 2008 01:14 pm at 1:14 pm |
  12. t

    I'd rather have McCain than a socialist with no experience.

    Can't pay your mortgage? LEt the government do it. Have bad credit- that's ok, buy that house, then spend the mortgage money on a flat screen tv. It's ok, the government will take care of me.

    After all , I NEVER have to take responsibility for my actions, because it is my right to have the government be responsible for me – it's someone elses' fault!

    Just like Barney Frank says "It's the Republicans fault" Even though he IS IN CHARGE OF THE FINANCE committee. I guess he was just absent. and is was Bill CLinton who signed the bill that started all this – lend everyone money for their mortage – REGARDLESS OF CREDIT HISTORY OR EMPLOYMENT STATUS.

    Look it up – that's what happened. REALLY.

    McCain/PAlin 08.

    October 8, 2008 01:14 pm at 1:14 pm |
  13. Becky

    What happened to a spending freeze? This sounds like an additional bailout. Sorry but I'm actually more to the right about this issue. People should not be bailed out for stupidity. If you got into that mortgage, you cannot put full blame on the lenders. That's absurd. If you were that ignorant not to read the fine print and ask questions maybe you don't deserve a house in the first place. I don't want my tax dollars going to bail out people who cannot do simple math.

    October 8, 2008 01:16 pm at 1:16 pm |
  14. Yvette in Detroit

    I am a single mom with high interest mortgage. I struggle to pay, but I do! Refinanced house 3 yrs ago. When I sat down to sign, the loan amount was TWICE what I wanted. The mortgage rep said "take it" and I said "NO!" Well, how am I being rewarded? If I had taken more $, McCain would bail me out? And now the neighbor gets a break as my property value drops again and he is driving a new car? Heres an idea, lets lower my interest rate and remortgage so I get more $ and the payments stay the same. I could use the difference to pay cash for the neighbors foreclosed home and have a second income as a landlord. That should be my reward!

    I was undecided until I heard McCain tell me he would bail out those who overborrowed and lower my property value even more. Get Real McCain!

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

    Obama has talked about a very similiar plan to help out homeowners for over a month now. Once again, McCain is stealing other's ideas. McCain is a follower, not a leader.

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

    John McCain showed the Americans last night that will all his experience he claims he has, I don't think he is presidential. It showed with his facial and body language. On TOP of that his RUNNING MATE is an airhead with a huge motor mouth. I don't think the world will respect America if those two are in the WHITE HOUSE.

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

    Anonymous asks:
    "Does anyone find it curious that the last really substantive question went to McCain and it was froma Navy man, allowing McCain to approach him, shake his hand, and "empathize"?

    If you were watching, that guy had a puzzled and incredulous look on his face when John McCain answered his question, but nodded and smiled the entire time Obama answered the same question.

    Watch the video...McCain did not win any more points with that guy than he did with me. Hobbling around, gasping for air...he looked angry, not happy to be there, and then blew out of there as soon as it was over, leaving Obama to shake hands, take photos and talk with the audience.

    Says volumes about McCain and how he thought he did, and that he already knows the outcome of this election. His only hope is that Palin will get the rednecks so riled up that someone will try to take a shot at Obama.

    Shame on you John McCain, not so long ago, I thought you were a great man.

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

    The next four weeks will be ugly.
    McCain/Palin are desperate and will be making crazy promises and slinging mud.
    McCain has lost the integrity that had endeared him to Independents and democrats.
    Palins hate speeches are shameless, divisive and dangerous.
    If anything were to happen to Obama, McCain and Palin should be held accountable for spreading fear and hatred.
    Its become a sad and sickening spectacle to watch.
    Nov. 4th can't come soon enough!

    October 8, 2008 01:18 pm at 1:18 pm |
  19. JD in Moraga

    Is he still taking financial advice from Keating? So if my friend and I buy houses in the same market for the same amount, I make my payments but my friend can't, then the Republican ticket will revalue my friend's home to lower their payments while mine stays the same. "Thanks but no thanks!"

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

    We have had eight long years of republican greed, selfisness, corruption, lying. I have never seen my country in such a sad state of affairs. McCain/Palin want to bring America down more. We mustn't allow that. McCain is a one issue guy. Taxes, taxes, taxes, it takes money to run a country you republican idiots. Shame on you republicans.

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


    October 8, 2008 01:18 pm at 1:18 pm |
  22. California Gold

    Only a man who is losing rolls out new plans to entice voters. He is just too little too late. Today it is another ploy of a desperate campaign and voters simply can't believe him.

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

    So McCain, Mr. Spending Freeze...sounds like more money for us taxpayers to be responsible for, huh? And don't you realize the reason the mortgage crisis is still just that, is because the first little bit of help Bush put through only helped a very small percentage of people? Why did they only do loans originated after 2006? Like there were no sub-prime loans before then? These restrictions are rediculous. What about people I know that were very honest and supplied their earnings statements and were told not to worry about a down payment and were given an amount they could have that was too high? I'm not saying they aren't partly responsible, but why in your plan would they have to have put down a significant down payment? Do you read the news? Most of these loans were done with no down payment. Way to jump on the bandwagon McCain.
    OBAMA '08

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

    Rather than having us pay for all this mess, why not put $50,000.00 into the pocket of every working American. They could pay their bills, put a down payment on a house, catch up mortgages and be spending fools. Seems to me this would definately start moving the economy. Instead they opt to bail out mortgage companies and banks with bad business dealings and then have us pay. I think not!!!

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

    Listen to Mitt Romney. He believes the $300B will come from within the bailout money. If the money is already there, at least McCain will actually use it where we were told it would go.


    Oh, I see ... the bait and switch. I don't remember ANYONE telling that taxpayer that bailout will be used to underwrite the cost for people who brought home that were beyond their means. Why should I pay for my neighbor's incompetence? What kind of nonsense is this?

    October 8, 2008 01:20 pm at 1:20 pm |
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