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. Matthew

    McCain is pandering.

    You walk that fence too long and you will fall. Jumping from one side to the other as often as he has...It has got to be tiring. McCain knows that he is losing ground everywhere, so it is time for the kitchen sink, the dishwasher, the refridgerator, et al.

    October 8, 2008 01:28 pm at 1:28 pm |
  2. Rob indetroit

    "That one"leads MCbush by 11% 52-41 enough said.

    October 8, 2008 01:28 pm at 1:28 pm |
  3. C

    HOW ABOUT THE PEOPLE THAT SHOWED RESTRAINT!!! I COULD HAVE USED MY FIRST TIME HOME BUYER PRIVILAGES TO PURCHASE A MANSION I COULD NOT AFFORD TO. I KNEW SOMETHING DIDN'T SMELL RIGHT WHEN 3 BEDROOM HOUSES WERE GOING FOR ALMOST HALF A MILLION DOLLARS!

    WHAT IS THE PLAN FOR FIRST TIME HOME BUYERS THAT SHOWED RESTRAINT AND HAVE BEEN WAITING PATIENTLY FOR THE RIGHT TIME??? ANSWERS PLEASE!!!

    October 8, 2008 01:29 pm at 1:29 pm |
  4. Sorry John

    Do we really need any more proof that John McCain is out of touch and just doesn't get it. This man is so out of touch with reality that it is no longer funny.

    OHIO Former Republician voting Obama-Biden

    October 8, 2008 01:29 pm at 1:29 pm |
  5. ME

    How come HALF of Obama's 455,000,000 dollars in donations are UNITEMIZED? And the campaign will NOT release the names of the donors? McCain lists all of his donors on his web site.....

    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.

    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 01:29 pm at 1:29 pm |
  6. Betty

    No cries of "socialism" from the Republicans???

    October 8, 2008 01:29 pm at 1:29 pm |
  7. PA voter for That One

    Just what we need. pying taxes on health insurance benefits, paying for our troops to stay in Iraq indefinitely, paying for Billions in tax breaks to Big Oil, and now paying for other people's mortgages when I can barely afford to pay my own. Forget this guy, give me "That One".

    October 8, 2008 01:29 pm at 1:29 pm |
  8. Serena

    Sure and those of us who purchased houses we could afford to pay for will see ourselves now sitting next to houses that can be sold significantly below ours because our tax dollars have made up the difference for the unwise purchaser.

    October 8, 2008 01:29 pm at 1:29 pm |
  9. LB

    If McCain thinks I'm going to work to pay my mortgage and pay additoinal taxes for people who are no longer making a housepayment but trying to live scott free in that property, McCain is full of you know what. I'll considering moving out of this country if McCain/Palin are elected that is if I have enough money left for a plane ticket once McCain gets done distroying this country.

    October 8, 2008 01:29 pm at 1:29 pm |
  10. OH

    The writing is on the wall and it is very clear; America wants "That One" instead of an angry politician and his lip stick girl.

    October 8, 2008 01:29 pm at 1:29 pm |
  11. Gtnaustin

    We now officially have "That one" and MacPalin – the unhappy meal.

    October 8, 2008 01:30 pm at 1:30 pm |
  12. susanne

    100 % presidential is obama-biden!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
    100 % not presidential is mccain-palin!!!!!!!!!!!!!!!!!!!!!!!!!!!

    it is a shame to see how much hate mccain has for obama,
    and it is great to see how respectful mr. obama still is to mccain!
    mccain is a very unstable character and mr.obama is always the same calm and confident character.for sure our next president of america has to be obama!

    October 8, 2008 01:30 pm at 1:30 pm |
  13. ME

    CNN – ALL BIAS, ALL BULL

    How come HALF of Obama's 455,000,000 dollars in donations are UNITEMIZED? And the campaign will NOT release the names of the donors? McCain lists all of his donors on his web site.....

    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.

    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 01:30 pm at 1:30 pm |
  14. indiePA

    McCain is showing that he has as much brain power going for him as Bush....NONE. American taxpayers should NOT have to shoulder the burden for greedy bankers and mis- or uninformed borrowers. This obvious ploy to keep corporate America in the pocket of the Republican Party is ludicrous. Go home, John, and take your next generation Bush (Palin) with you!!

    October 8, 2008 01:30 pm at 1:30 pm |
  15. UG

    Senator John McCain and Gov. Sarah Palin have been running one of the most appalling campaigns we can remember,"
    "They have gone far beyond the usual fare of quotes taken out of context and distortions of an opponent’s record — into the dark territory of race-baiting and xenophobia.

    No doubt this old pig with faded Lipstick is offensive for American psyche.

    The PEARLS of wisdom from Obama / Biden are rolling on our front lawns so we can live in peace & prosperity, live as a world citizen , agreeing with our friends and debating with our adversaries, recognising that every one is different with different believes and personalities. But we are created equally in the eyes of God..
    .
    America will go for PEARLS (black & white ) at any time.
    That is how America is.
    So ladies, wear a two string of pearls- one for Obama and One for Biden. You will look beautiful

    October 8, 2008 01:30 pm at 1:30 pm |
  16. Donald Darko

    And they try to call OBAMA a socialist?

    Get a grip, JSM III

    October 8, 2008 01:30 pm at 1:30 pm |
  17. ME

    Zogby down to 2 points....Rasmussen down from 8 to 6.
    How come HALF of Obama's 455,000,000 dollars in donations are UNITEMIZED? And the campaign will NOT release the names of the donors? McCain lists all of his donors on his web site.....

    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.

    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 01:30 pm at 1:30 pm |
  18. Obama/Biden08inJesus'Name

    I want all trouble homeowners (including myself) to get help, but we already gave Paulson $850 billion to do just that! Is McCain sleeping on the job again?

    I'll be voting for That One!

    October 8, 2008 01:31 pm at 1:31 pm |
  19. David Goldman for OBAMA

    Ted van Tol,

    THANK YOU FOR YOUR COMMENT &

    WE COULDN'T AGREE WITH YOU MORE.

    MUCH LOVE TO YOU &

    THE NETHERLANDS.

    October 8, 2008 01:31 pm at 1:31 pm |
  20. PLEASE, PLEASE, PLEASE MCCRYPT, TELL US THE POOR OLD WARRIOR STORY FOR THE 4,157,819th TIME, WE JUST CANNOT HEAR IT ENOUGH WHILE THE ECONOMY DISSOLVES BEFORE OUR VERY EYES!!

    I hope "that One" keeps nailin' failin' palin and the sleepy, cranky, peevish Poor Old Warrior!

    October 8, 2008 01:31 pm at 1:31 pm |
  21. Where is the Leadership?

    Does John McCain ever bother to consult with his political advisors before make such "FOOLISH" proposals?

    October 8, 2008 01:31 pm at 1:31 pm |
  22. Cynthia; Bham

    That's the last thing that we need is them shifting more cost to the taxpayer. Some of us are doing okay but if you go and add more to it then it might cause some of us to have financial problems.

    October 8, 2008 01:32 pm at 1:32 pm |
  23. Apples for sale

    How many of the mortgages were for house flippers trying to make a fortune?

    October 8, 2008 01:33 pm at 1:33 pm |
  24. Judo

    Obama will win this election. People who play dirty such as McCain/Palin never come out on top! To CNN and the NYT, I want to commend you on your reporting. You keep it straight and unbiased. You can't help but to report what the numbers show. Too bad for the Republicans that the numbers show that Obama is kicking butt out there. So please Republicans get over it!

    Go Obama/Biden 2008 & 2012!!! Keep up the good work!

    October 8, 2008 01:33 pm at 1:33 pm |
  25. Armando

    Vote Nader!

    October 8, 2008 01:33 pm at 1:33 pm |
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