October 8th, 2008
12:00 PM ET
6 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. PA voter

    Last part of the article important to highlight:

    "That could prove to be very unpopular with homeowners who did not take on too much debt and so would not be eligible for help, as well as ordinary Americans who objected to the Hope for Homeowners plan as a bail out for delinquent borrowers and irresponsible lenders."

    October 8, 2008 01:20 pm at 1:20 pm |
  2. MurphyMorseJohnson

    McCainian Trickle Down Republicanomics like Cheney and Bush's eight years show no real love for the American mortgagee. But, let's face it. McCain married an heiress of $100 million, drives numerous imported cars, and doesn't know how many houses he owns. Not having to worry about debt, McCain shows yet again how out of touch and little economics he knows about the average American homeowner.

    October 8, 2008 01:20 pm at 1:20 pm |
  3. The Stallion & The Champ vs. The Old Mule and Moose Poop

    Nice stink bomb, Grampy!
    Guess what? You just abandoned your fiscally conservative base.
    And beside that, it's already written in the current rescue package. Oops! Pandering falls flat with a loud THUD!

    October 8, 2008 01:20 pm at 1:20 pm |
  4. eds

    Can we say FLIP FLOP . . . . again?????

    Send 'em packin' dog gon it, ya know.

    October 8, 2008 01:21 pm at 1:21 pm |
  5. mitch

    what will happen to disabled if mccain freezes government? will they be left to fend fer themselves in the streets this winter? he scares the poorest folks.

    October 8, 2008 01:21 pm at 1:21 pm |
  6. Liz T, Tucson

    Another attempted Hail Mary that will be incomplete. This is so obviously not in tune with the rest of the GOP platform that it is a seat-of-the-pants proposal to try to sway some voters. Thanks but no thanks.

    October 8, 2008 01:21 pm at 1:21 pm |
  7. Barackafied Cheesehead

    Another knee-jerk move instead of offering solutions/strategy.
    McCain wanted to fire the SEC Chairman over the Wall Street meltdown and now he’s going to order the Secretary of Treasury? So does this mean bipartisan is all talk and all McCain aspires to be is a dictator?

    October 8, 2008 01:21 pm at 1:21 pm |
  8. Len in Washington

    This is going to go over like two lead ballons with his base.

    Gingrich is probably writing McCains political obituary right now.

    October 8, 2008 01:21 pm at 1:21 pm |
  9. he's not my friend

    When Senator McCain talks he is never completely honest about anything he says. I want a president that I know I can trust. One that if he makes a mistake he can admit to the American people that he made one. Senator McCain made bad judgement to go into Iraq initially I have yet to hear him admit that or say that it was the wrong decision to invade. The surge is after the fact. If he is going to talk about the surge he has to talk about the reason for the surge and I have never heard him say anything about going into Iraq before the surge. You can not claim success for the good which is part of a situation without acknowledging your part in the the bad which is part of the same situation.

    October 8, 2008 01:22 pm at 1:22 pm |
  10. MurphyMorseJohnson

    Why should McCain worry about the average American taxpayer? He's loaded–his wife is a $100 million heiress, his cars are foreign made, and he doesn't even know how many houses he owns.

    October 8, 2008 01:23 pm at 1:23 pm |
  11. Peter of Oregon

    McCain, put your country first and drop out of the Presidential race.

    October 8, 2008 01:23 pm at 1:23 pm |
  12. Voting for "THAT ONE"

    My friends, Is McCain officailly a socialist? I thought you republicans hate stuff like this. Anyway, his bright new idea is already in the bailout. My goodness, what is wrong with senior mccain?

    October 8, 2008 01:24 pm at 1:24 pm |
  13. McCain Invented the BlackBerry, Palin Invented the Manure Spreader

    The McGIMMICK of the WEEK:

    Bankrupt the American economy by buying everyone's homes!

    My goodness, he really doesn't understand the economy , does he?

    LOL

    October 8, 2008 01:24 pm at 1:24 pm |
  14. MurphyMorseJohnson

    Why should McCain worry about the average American taxpayer? He's loaded–his wife is a $100 million heiress, his cars are foreign made, and he doesn't even know how many houses he owns !!!!!!!!!

    October 8, 2008 01:24 pm at 1:24 pm |
  15. KEATINGECONOMICS.COM

    "John McCain and Sarah Palin are running the most appalling campaign that we can remember." -The New York Times

    October 8, 2008 01:24 pm at 1:24 pm |
  16. Ruthie

    Did you see last night Sean Hannity and Robert Gibbs exchange... :) That was awesome....Mr. Gibbs took over Sean Insanity and anti-Semitism.....Finally someone putting Mr. Insanity in his place in his own house.....WAY TO GO ROBERT!

    That One 08’

    October 8, 2008 01:24 pm at 1:24 pm |
  17. jim

    The tax payers are the voters.....

    so long John!!

    October 8, 2008 01:25 pm at 1:25 pm |
  18. DOELITZSCH

    WORRIED ABOUT 300 BILLION FOR MORTGAGES, WHAT ABOUT
    300 BILLION A YEAR NET FOR OBAMAS HEALTHCARE PLAN
    DOES ANYBODE KNOW MATH

    October 8, 2008 01:25 pm at 1:25 pm |
  19. Do they think Americans don't think?

    Does the McCain-Palin ticket think American don't think? I believe so because this is just another quick answers to the mortage crisis that wasn't thought through. I have my own bills, I don't need more added on.

    October 8, 2008 01:25 pm at 1:25 pm |
  20. Ted van Tol

    Hello America,

    I live in the Netherlands and got out of my bed at 3.00 pm to see
    the debate. (and believe me, I am not the only one, the debate was
    life on Dutch TV.
    I could not sleep afterwords because I realized Barack Obama
    had won and I am looking forward to the 3rd debate next week.
    I hope Senator Obama will end with the folowing line:

    With a vote for John McCain America is heading for the past.
    With a vote for me, I will lead America to the future.

    That will make his election safe, I am sure.
    And what a party we will have here in The Netherlands!!!!!!!!!!!!!!!!!
    Please keep this man safe! because this world need Barack Obama
    to become a better place.

    With love,

    Ted van Tol

    October 8, 2008 01:25 pm at 1:25 pm |
  21. No Hillary = No Obama

    Says who? The biased oompa-loompas at CNN? I find it amusing that after the debates, the CNN clones are sitting tethered to their lap tops, like lap dogs all barking out the same sounds on command. Obama's peanut gallery.

    October 8, 2008 01:26 pm at 1:26 pm |
  22. milo

    "why not put $50,000.00 into the pocket of every working American. "

    Because that would cost seven TRILLION dollars?

    For many people, that's more than they pay in taxes in a YEAR, where would that money come from?

    That's so preposterous, it would make more sense to just have nobody pay ANY takes for a year.

    October 8, 2008 01:26 pm at 1:26 pm |
  23. OMG

    Johnny boy you are too old for presidenship, please go home take rest.

    October 8, 2008 01:26 pm at 1:26 pm |
  24. Ruthie

    Whit this one McSame lost the right conservatives....those ones that Gov. AirHead has brought to his camp..... SORRY!

    October 8, 2008 01:27 pm at 1:27 pm |
  25. Gtnaustin

    Hey John - thanks for laying YOUR failed policies on my back. Guess when you have 17 houses YOUR not to worried about the average American's house likewise when you are a kept man by a booze heiress – not to worried about money either.

    October 8, 2008 01:27 pm at 1:27 pm |
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