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. Underwater Mortgages

    I'm a democrat with an MBA from Columbia. I'll bet most Republicans will agree with me that McCain's idea of writing down mortgage principles is a stupid, socialistic move.

    Does John think things through before he opens his mouth?

    Is he going to demand Wells Fargo take a loss on an underwater mortgage. (HE can't do that in a Free Market economy). Is he suggesting that the government make up the difference for Wells Fargo ( that's homeowner welfare).

    Stupid John ... just stupid .... it shows how you don't have a clue about the economy, business, risk versus reward ... absolutely nothing.

    October 8, 2008 01:33 pm at 1:33 pm |
  2. John McCain's Judgement is Questionable

    John McCain's leadership style is more like a "Loose Cannon" than a Maverick. This man has lost all honor and respect.

    October 8, 2008 01:34 pm at 1:34 pm |
  3. Michelle in PA

    I wouldn't mind paying my share of $300 billion for Obama's health care plan, because it would be more than evened out with the $547 per month I pay to insure myself and my two children through my employer, plus the $1000 per person per year out of pocket expenses, plus the services that are NOT covered, plus my son's pre-existing asthma which is not covered..plus...plus....

    What do I get under McCain's plans, any of them? Bent over in favor of the uber wealthy saving their millions for that tenth vacation home, that's what! No thank you, Senator McCain.

    October 8, 2008 01:34 pm at 1:34 pm |
  4. Mark, B'ham., Al.

    I am voting for McCain but I do not agree with taxpayers taking over the mortages of derilicts who are not paying their mortages because the should not have gotten one in the first palce or got a bigger place than they could afford. In the early 90"s I had to do a foreclosure because I was transfered to another base while in the Navy and I lost my home because I could not sell it during the Clinton Administration. I did not get help and it took me 8 years to get another mortage. I also do not think it is right for a judge that the democrats want to lower the principle and force the lenders to give those being foreclosed low interest rates which if Barney Franks and Maxine Waters have their way will be at an excellent credit rating. That is not right!

    October 8, 2008 01:35 pm at 1:35 pm |
  5. Randy

    Isn't the 700Billion bailout or "rescue" plan supposed to do just that?
    Oh wait, that was to bail out the top executives so that they could go on a junket.
    Like we need another bailout for all the troubled mortgage owners.
    Lets see, tax cuts for the rich/corporations, bailout plan for Wall Street companies, subsidies and tax reductions for Big Oil and privatization of health care and now this.
    Senile McCain must be losing his bearings!!!!!

    October 8, 2008 01:35 pm at 1:35 pm |
  6. WHAT DUH?

    Question: If I am paying the note on my neighbors house, Do I own that property?

    October 8, 2008 01:35 pm at 1:35 pm |
  7. KC

    Oh great so now the Government can own my house??? How is this Government staying out of my way.

    October 8, 2008 01:35 pm at 1:35 pm |
  8. Truly American

    You pinheads- this is the money already set aside in the bailout. You bleeding heart wanna be liberals following like sheep to destruction are really scary. You will be lucky under the H Obama if you have jobs the way he wants to tax businesses. Then lets see who is complaining then.

    NOBAMA- We can't afford an empty suit who is way to left for this country.

    October 8, 2008 01:35 pm at 1:35 pm |
  9. William B in Las Vegas

    I absolutely LOVED McCains magic act last night!!! I was AMAZED when he transformed himself into Dennis Kasinich on stage!!!

    October 8, 2008 01:36 pm at 1:36 pm |
  10. Lucious Leftfoot

    What happened to smaller government? McCain has just become comfusing lately.

    I'm going to need my president to make sense, so I'm voting for "that one".

    October 8, 2008 01:36 pm at 1:36 pm |
  11. Janine

    I watched the debate last night and I have one question:
    How is John McCain going to pay for everything without raising taxes on anyone?
    He wants to give a tax credit of $5,000.
    He plans to stay in Iraq because he obviously supports the invasion.
    He wants to use tax money to buy the bad mortgages.
    We are already in a deficit by trillions of dollars.
    He wants to continue the tax cuts that George Bush did.
    He's going to scrub defense spending. Most of the spending is in Iraq. So does that mean we are left wide open for attack domestically.
    If you've been watching international news, we are about to be in hot water with China because of our support of Taiwan. Isn't China one of our biggest lenders. How will we defend ourselves here if there was an attack with our forces in Iraq and no money.

    October 8, 2008 01:37 pm at 1:37 pm |
  12. bill

    mccain go back to arizona and send this dispicable excuse for a woman palen back to alaska GOD BLESS YOU ALASKINS WE DONT WANT HER SHE IS WACKO COOKO

    October 8, 2008 01:37 pm at 1:37 pm |
  13. Mary Anne

    MCCAIN doesn't have a clue...He talks down to the audience "Bet you never heard of Freddie Mack/Fannie Mae", addresses his opponent as "that one" and thinks that nothing he has said in the past is relavent "The war will be short and easy" 10 Billion dollars a month for the war in Iraq and i can't even fathom what he would do as president.

    Be scared...very scared of JOHN S. MCCAIN!!!

    October 8, 2008 01:37 pm at 1:37 pm |
  14. Mark

    Actually, Sarah's the Guardian of the Northern Frontier – with its hot springs, mud flows and mud baths! You betcha she's a natural!

    October 8, 2008 01:38 pm at 1:38 pm |
  15. JL

    Of course he is going to shift the burden to the little guy–HE IS A VERY WEALTHY MAN! One who only hangs with other rich guys and, as we have seen the last few weeks, rich people will do anything to hold on to their money. So, McCain will do anything he can to protect himself, his wife, and his rich friends.

    He respects you, your mortgage and your current situation just as much as he does Obama. None at all.

    October 8, 2008 01:38 pm at 1:38 pm |
  16. Don

    AIG execs belong in prison for their next jucket. If the Bush admin. had any credibility left they would demand an investigation, pull all the money back, and put them in jail.

    October 8, 2008 01:38 pm at 1:38 pm |
  17. cool onlooker

    "Immediately to buy up the bad home loan mortgages? "

    How about immediately sell out the extra SIX (6) homes and go back to average American's life?

    And then "rightfully suspend" the campaign again... makes sense..


    October 8, 2008 01:38 pm at 1:38 pm |
  18. wwf

    To no Hillary, no Obama. How are you going to live with yourself? What will you do when Palin does not win either? I guess you were just for Hillary because she is a woman, not for what she stood for. Its because of people like you that I am glad that most people in the US don't even bother to vote.

    October 8, 2008 01:38 pm at 1:38 pm |
  19. Wisconsin

    Wow, he will say anything now ...


    October 8, 2008 01:38 pm at 1:38 pm |
  20. Peter (CA)

    Hey Doelitzsch-It's "McCain", not "McCane", that you are supporting.

    But why? Didn't the Republicans balk at the "bailout" because they wanted to make sure taxpayers were protected? Isn't it the Republicans who say Obama is a socialist??

    Way to go McCain. It is a shame to see a once competent man implode like this.

    October 8, 2008 01:38 pm at 1:38 pm |
  21. Sherry

    Just wait a few hours. He'll change the plan. Of course, the new plan will likely be even worse.

    October 8, 2008 01:38 pm at 1:38 pm |
  22. Texas Straight Talker

    A President must be diplomatic at all times. Many foreign countries read body language and facial expressions and are not able to relate to the excuses I have read and heard for John McCain's rude behavior in the debates he has had with Senator Obama. He spews open contempt for Senator Obama in my opinion. John McCain would make a poor representative of the USA. It is obvious he is intolerent of diversity and whether some want to accept this or not the United States of America is a diverse nation. We are a melting pot!

    October 8, 2008 01:38 pm at 1:38 pm |
  23. bridgette

    Sometimes when you don't have an idea it may be better to just be quiet. I don't think the government should have to buy those mortgages just allow banks to have a little more freedom to negotiate with the refinancing of some of the mortgages.

    October 8, 2008 01:39 pm at 1:39 pm |
  24. PA voter


    McCain must be telling me to vote for Obama. OK, then, I will.

    October 8, 2008 01:39 pm at 1:39 pm |
  25. Empire, CO

    Wait, I thought McCain wanted to freeze all government spending except the military and have tax cuts for everyone. This sounds like spending to me. What's he going to do, have the Treasury print up a few hundred billion dollars? Shame shame shame on McCain! Another day, another lie. McCain supporters, you're outnumbered 3 to 1 now, you may as well save your dignity and vote for "That One '08." Even Wall Street Journal and NYT think McCain is a dirtball. That flushing sound you hear is John's campaign, it's over for Johnny!

    October 8, 2008 01:39 pm at 1:39 pm |
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