McCain to unveil mortgage plan

Posted: Thursday, April 10, 2008 10:46 AM by Domenico Montanaro
Filed Under: 2008, McCain

From NBC's Bethany Thomas
NEW YORK -- In Brooklyn later today, McCain is expected to unveil a new plan to ease some of the mortgage crisis burden.

The plan will give homeowners the option of trading their current mortgage for a more realistic mortgage that reflects current market value.

In prepared remarks, McCain explains that if the homeowner chooses to participate in the program, the government and original lenders will hold a certificate for part of the loan's original value.

"It is built on the reality that homeowners should have an equity capital stake in their home," McCain will say, per the remarks. "Homeowners would end up with a 30-year mortgage and an equity stake in their home. The new lender would receive a federal guarantee of the mortgage. And the taxpayer gets a benefit if the sale value ever recovers."

At the event, McCain will be introduced by New York City Mayor Michael Bloomberg.

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Comments

Does his plan involve anything to do with the Keating 5 or the Savings and Loan scandals he was part of? McCain's solution: let them eat cake. He's Bush III.

Please, all democrats, rally around whoever the nominee is since any democrat is better than McCain, McNasty, McWar, McGeritol, Mc"Where Am I?", Mc"Change my Depends".

Pat Huntington NY (Sent Thursday, April 10, 2008 10:49 AM)

Bloomberg making the rounds huh?

McCain on the economy, hmm, wonder if his delivery will improve (amazing that that's what I think to concentrate on...). Now to see the polling on "will he look wooden giving a speech or not"...

Obama for America

Lisa, New Britain, CT CT for Hope! (Sent Thursday, April 10, 2008 10:56 AM)

http://twocanpete.blogspot.com/
And for all of you that lived within your means and didn't by an obscenely overpriced house; well you can just go set on a toadstool. Of course we'll need to have all your money first!

twocanpete (Sent Thursday, April 10, 2008 10:58 AM)

Is Bloomberg hedging? Didn't he introduce Obama a couple of weeks ago?

McCain needs to talk about the economy. I'm interested in what he has to say. More importantly will help - or hurt - his credibility on the economy?

http://thepajamapundit.com/

the Pajama Pundit (Sent Thursday, April 10, 2008 11:01 AM)

Sally, Virginia (Sent Thursday, April 10, 2008 11:07 AM)

Pat Huntington NY (Sent Thursday, April 10, 2008 11:10 AM)

I thought John McCain didn't think we needed to help homeowners? Is another wheel coming off the Straight Talk Express?

Nashville_fan (Sent Thursday, April 10, 2008 11:11 AM)

Bless his heart. He really believes he can win. Too cute.

Linda (Sent Thursday, April 10, 2008 11:15 AM)

John McLame's mortgage plan:

Let's bomb Iran.

John McCentury's stimulus package:

Let's stay in Iraq for 100 years.

John McSame as Bush's Social Security Plan:

North Korea? Bomb them too.

CitizenJ (Sent Thursday, April 10, 2008 11:18 AM)

I'd like to know more about McSenile's plan! Like more importatnly who came up w/ it and how will it inevitably screw teh home onwner. FR is there a link that we can actually see this plan indepth and not just what Mcold says is the highlites? It sounds OK, but if a Reup suggested it, it probably ends in tragedy....

Kris STl (Sent Thursday, April 10, 2008 11:20 AM)

NO BAIL-OUTS FOR THE GREEDY SOB's.
NO BAIL-OUTS FOR THE GREEDY BANKS.

If you signed a contract you could not uphold then you deserve to loose your house, if not also go to jail for fraud.

Suck it up, you greedy loosers. Go back to renting apartments.

How many of these 'poor' misdirected victems also have a H3 in the driveway? Guarenteed that 99% of them still have dish TV and 150 channels going, not to mention Xbox's and flatscreens.

NO BAIL-OUTS FOR GREED.

RH Oregon (Sent Thursday, April 10, 2008 11:23 AM)

Deja-Voodoo !!

Say good night, Gracie

'... McCain: I'll Cut Deficits Like Reagan (Who Tripled The Deficit)

"When Senator John McCain was asked here this afternoon how he plans to balance the budget, he said that he hoped to do so by stimulating economic growth - and approvingly cited the example of President Ronald Reagan," the New York Times reports.

"There was one thing he did not mention during his response: the deficit nearly tripled during the Reagan presidency, partly due to tax cuts and increases in military spending."

The exchange occurred at a town-hall-style meeting held in a tent outside Bridgewater Associates, an investment firm. A member of the audience stood up and asked Mr. McCain, who has called for balanced budgets, how he plans to do it.

"Basically, which is it?" the man asked Mr. McCain. "Straight talk: Do you want to raise taxes, cut entitlement spending, cut defense spending, or have a deficit?"

Mr. McCain did not explain how he plans to balance the budget, but spoke generally about hoping to stimulate the economy - and cited President Reagan...'

MSierra, SF (Sent Thursday, April 10, 2008 11:24 AM)

Yeah, he wants to help Americans.....after we rebuild Iraq of course!

Steve A Jonesboro IN (Sent Thursday, April 10, 2008 11:25 AM)

He's just really hoping he'll remember what they told him to say. He's been really grumpy with himself since he screwed up the sunni/shia thing again the other day. Probably thinking: "Man, this is like having to take exams in the Naval Acadamy. Can't we just get to the fun part and start bombing somebody."

JohnnyU, WA Stae (Sent Thursday, April 10, 2008 11:27 AM)

Whoever the Dem. nominee is, he/she would be served by perhaps courting Fmr. Sen. Hagel as their running mate, or perhaps. Collin Powell. An Obama/Hagel or Clinton/Powell ticket, would be unstoppable in my opinion. And I think Hagel would consider it even though he's republican because he's a true moderate unlike McNasty.
Pat Huntington NY (Sent Thursday, April 10, 2008 11:10 AM)

I've love to see an Obama/Hagel ticket. That would really put a hurt on McCain. Obama/Nunn would also be pretty powerful against McCain as it would put Georgia and the south in play.

BL, Cincinnati OH (Sent Thursday, April 10, 2008 11:28 AM)

Sally, Virginia: '...At least he has a plan and isn't proposing just throwing money at people who are irresponsible,...'

Right Sally !!...
He's going to annex Iraq
Then, he'll throw out all those Shias and give us THEIR HOMES

Of cours, he'll have to invade Iran first to get more homes for the Shias displaced by radical Islamist !!!

This works on sooo many levels !!

And he's gonna cut the deficit, JUST LIKE RONNIE REAGAN !!

MSierra, SF (Sent Thursday, April 10, 2008 11:30 AM)

"Caviot Emptor" Let the buyer beware! When the people who got themselves involved in sub-prime borrowing, they knew or sould have known they did nor "in reality" qualify for a loan they could not afford. Same as the loan company knew that a person who was not able to repay any loan. Regulation by the government is absolutly necessary. I feel bad about the poor people who got themselves bound up and unable to pay, but that was the situation in the first place. And the loan companies who loaned the money to unqualified people, shame on you. Bottomline is they can't expect the rest of the people with good sense not to get involved with subprime loans to "now" bail then out. Deregulation is not good for the unwashed masses. It is only good for the rich people who want to get richer regardless of who gets smashed to nothing.

Pacheck, Huntington Beach, Ca. (Sent Thursday, April 10, 2008 11:31 AM)

Just another one of his flip flops that he deems is politically expedient. Typical press will give him a pass.

Mike, Ohio (Sent Thursday, April 10, 2008 11:31 AM)

Not very nuanced comments here. Lots of personal attacks with no analysis of the policy. Come on people you can do better.

nuanced (Sent Thursday, April 10, 2008 11:36 AM)

CitizenJ: At least Bush had a plan. Democrats have jack.[indeed,never mention it]. All of this ''bomb''Iran garbage is hooey. You forget that were supposed to ''bomb Iran'',according to the leftwingers who had the ''inside dope'',back in Sept. of 2006. Pass to the Democrats and even the liberal NEWSWEEK calls their mortgage bailout scheme,''dumb''.

Lee Holmes (Sent Thursday, April 10, 2008 11:36 AM)

Did he finish reading the Greenspan book?!

McSame has economic policy plan that mirrors Bush!

what a joke!

McSame's Economic Plan?! (Sent Thursday, April 10, 2008 11:39 AM)

Sally, Virginia - Maybe the Democrats feel we should help homeowners because they realize that when 5% of all homes become vacant EVERYONE's home value will drop significantly! Not to mention all the taxpayers money that was just given to Bear Sterns with NO requirements! How about the tax rebates we are STILL giving to oil companies? Give me a break.

New Independent (Sent Thursday, April 10, 2008 11:43 AM)

I am no mccain supporter, but his plan does at least help the homeowner, the plan that bush's man proposed bails out the lenders, makes it attractive for the banks to foreclose, and leaves the homeowner in the street wearing a barrel, a true republican plan. but be forewarned, what is any plan going to look like after it goes through the corporate controlled congress? almost always anything that is beneficial to the consumer gets ripped from any bills before they make it to mr. bushs desk, and he will be all to happy to sign them, that’s why we need obama in that position so he can veto them until congress gets it right

MK,MO (Sent Thursday, April 10, 2008 11:43 AM)

I thought McCain was against govt bailouts...Did you notice who's basically securing new home loans for homeowners?

Hey, I'm all for govt intervention of some sort--but don't let McCain get away with calling the kettle (Dems and their proposals) black.

Jmp, Northern MN (Sent Thursday, April 10, 2008 11:45 AM)

I read all these "blogs," and it never ceases to amaze me at the contempt you all show for the "other" candidates, i.e. McCain and Clinton.We all know you are all for "savior" Obama and msnbc is obviously very biased for Obama as well. You all show your intelect and age by the slurs you hurl, Mcnasty, Mcwar,etc.I try to paste a CBS article on the Rezko trial and the overall corruption in Il. government and my "blog" never got posted after three days of trying. What ever happened to reporting the news, instead of manufacturing it? Regarding your Saint Obama, be careful what you wish for, if he wins, the "changes" he preaches, may come to pass.

FREE AND THE BRAVE (Sent Thursday, April 10, 2008 11:48 AM)

Last time I listened to McFossil he didn't think the govenernment SHOULD help the homeowners; flip-flopping again? Guess he's riding the "Double-Talk Express" now.

Diane from Illinois (Sent Thursday, April 10, 2008 11:49 AM)

flip flop McCain

Keith in PA (Sent Thursday, April 10, 2008 11:54 AM)

Sally from Virginia,

Why did the government bail out Bear Stearns? Why did most of congress and W favor a stimulus package? Why is Bernake dropping rates? To help the economy.

So Sally, to answer your question why would public officials have an interest in "throwing money" at people about to lose their homes, defaulting on loans, sticking banks with ANOTHER house in a gluttonous market, which reduces construction, which reduces jobs, which reduces consumer spending, which reduces more jobs - it's the economy sally!

Randy E (SC) (Sent Thursday, April 10, 2008 11:56 AM)

RH Oregon - Instead of helping Americans, I guess you're okay with using AMERICAN taxpayer money to rebuild Iraq, while they have an extremely large surplus right? And I think it's very unfair of you to say it's all about greedy homeowners. What about the greedy banks that have increased the interest rates to such a high amount that the people can't pay? Along with all the other increases in food, gas, electricity, etc. that no one knew about. Maybe these Americans are simply unable to stretch their budget that much anymore. I think a little compassion on your part would have been more patriotic!

New Independent (Sent Thursday, April 10, 2008 11:56 AM)

Hope Sally in VA and those like her NEVER get in a situation that puts them at the mercy of the RNC.

I wouldn't wish that on any American. Unless they were rich.

Dr.Strangedog, MI (Sent Thursday, April 10, 2008 11:56 AM)

I think his plan includes free army suplus tents to anyone who is foreclosed on.

Noel, Hot Springs, AR (Sent Thursday, April 10, 2008 11:58 AM)

On the surface, the plan sounds good, but he'll need a democratic congress to pass it!

Pete Caloger Bushkill, PA 18324 (Sent Thursday, April 10, 2008 12:05 PM)

Hillary Clinton's plan is the best. Check it out on her website.

Hillary has already proven she can win big in the big electoral rich states that are the must wins for the Dems in November. Like Ohio, where Obama outspent Hillary 4 to 1 yet he won only 5 out of 88 counties, those with large voter turnout for him, the only voting groups he won. If you cannot win in Ohio, you cannot win the Presidency. Today, in Ohio polls, Hillary beats McCain by 10 points, while Obama ties or loses to McCain in Ohio. Superdelegates take note! Same story in polls in other must win states like Florida, Michigan, Penn, and even New York.

Obama is unelectable. No amount of 24/7 media promotion, even on the MSNBC Obama network will ever make him electable.

Why does the corporate owned media relentlessly and shamelessly promote Obama 24/7 and attack Hillary 24/7? They know he is unelectable.

Obama's negatives are rising with the Antoin Rezko, Crown, Exelon, Emil Jones, "pastors" Wright, Moss, Meeks, Ayers & Dorhn,Odinga-Kenya, Africa, and scariest of all AUCHI revelations. Investigative journalists should be reporting on these scandals. Any ONE of these revelations is likely to sink Obama, but combined they are lethal to his candidacy now and in the future. Obama does not belong on the ticket at all, he's too risky for the Dems. I'd like to see MSNBC do an interview with Obama's campaign manager David Axelrod and Obama supporter David Wilhelm about their relationship with Rezko and Auchi. Wilhelm is named in the criminal trial of Rezko and Auchi is currently criminal indicement as well. The voters deserve to know this information.

What would ML King, who fought for voter rights, think of Obama's attempts to disenfranchise voters in Michigan and Florida? The Dems cannot win without these states in November and no Dem nominee will be legitimate without counting the votes of these two electoral rich states which Hillary has won and deserves to have counted for her.

*VOTE SMART! VOTE PATRIOTIC! VOTE HILLARY CLINTON!

James (Sent Thursday, April 10, 2008 12:08 PM)

Free and The Brave ,I often have tried to post and have not been posted thats the way it works.If you would like I can recomend a lovely cheese to go with your whine.The name calling is a bit silly but it is done in light . And I can tell you that Mr Montanaro in my opinion is far from biased for Obama.I think he is in the tank for Hillary. There are people in for for all sides, leaning more towards them Demcrats.Fair reporting all the same.

Brian M De. (Sent Thursday, April 10, 2008 12:11 PM)

PA will be in larger numbers for Clinton than the polls show (mark my word)as many of the other polls have also failed to realize her strength of support. People in PA are practical not idealogical. They've seen more than one candiate who says a lot and does little. They want someone who will WORK not TALK!!! Obama is not going to fool PA voters like he has many younger voters. Why do you think Obama began his comapaign by targeting young voters? Because young people are much less likely to reserach him (because they are lazy) and much more likely to vote based on their feelings. I think it's sad that many people have voted for a black because they are black and young people who are more worried about "feeling good" then making a smart decision might determine the outcome of the democratic nomination. I pray this ship turns around before we lose the white house AGAIN!!!!

a of IL (Sent Thursday, April 10, 2008 12:12 PM)

Why we need to rescue a bunch of uneducated morons who don't earn enough money to buy a house is beyond me. I know liberals in America don't believe that hard work will be rewarded, but if John McCain wants to do something to help these folks that were too stupid to read the fine print on their contracts, then god love him.

jerry/corpu christi texas (Sent Thursday, April 10, 2008 12:15 PM)

James that is not James Carville by chance ? Naw not smart enough he would have at least posted a new message instead of playing cut and paste with the same one.To answer your question ML King would not have been fooled by Hillarys attempt to blame somebody else for something beyond their control. Reiterating the lie that is is Obama's fault that their is no revote in Fl and Mi.As it was said about her taughting her Help in the Northern Ireland Peace Treaty as well as her gaffe in The Bullets Over Bosnia Story. It is a WEE BIT SILLY.

Brian M. De. (Sent Thursday, April 10, 2008 12:19 PM)

New Independent,
I hear what you are saying, but what is going to encourage people to live within their means and buy homes they can afford if the government sweeps in behind these people to solve their self-induced financial woes? Do you live in a home you can't afford? I suspect not...most Americans take on mortgages they can manage and don't expect the government to bail them out.

Sally, Virginia (Sent Thursday, April 10, 2008 12:20 PM)

Wow - you all are harsh about this sub-prime mess.

I agree that some people got into this mess on their own, but there are a lot of good people that are caught up in this too. Michigan has one of the worst, if not the worst, economies in the country, and people are losing their homes after their jobs flee this country. (Thank you NAFTA, CAFTA, China, and India.)

If the govt can bail out Bear Stearns and give billions to the oil companies in tax breaks, why can't we help our own?

L - MI (Sent Thursday, April 10, 2008 12:24 PM)

New Independent to Sally, Virginia - Maybe the Democrats feel we should help homeowners because they realize that when 5% of all homes become vacant EVERYONE's home value will drop significantly! Not to mention all the taxpayers money that was just given to Bear Sterns with NO requirements! How about the tax rebates we are STILL giving to oil companies? Give me a break.
***************************************************
Thank you for that response. I've been paying taxes for over twenty years (single parent). Unfortunately, I thought I was being wise as a first time homeowner, up front and honest on income - however those evaluating my loan failed to account certain incomes that can change and should not be used(child support, and overtime) I found out later. I would like the assistance of a bail-out since I've paid my taxes.

Countrywide is my lender and I've tried for nearly a year to sale my home. In fact, tried to have home refi'd before foreclosure because of prepenalty they refused; asked if they would remove prepenalty for a sale they refused. Although, in foreclosure I plan to resume payments somehow looking for another second and third income, even though, my son is in college and I'm helping him, as well, and he dosent want me to work that many jobs but I haven't any choice. God be with me I will remain healthy, get him through college and hopefully be able to obtain a loan that is truly based on my income in order to stay in my home.

Again, thank you New Independent!

PR, Renton, Washington (Sent Thursday, April 10, 2008 12:24 PM)

New Independant:
Could not agree more on Iraq. We should have all troops out by next Presidential election. 4 years max, anyone who says they will do it sooner is blowing smoke... If McCain does not start talking serious withdrawal from Iraq, I will be writing in Ron Paul. The only candidate that ever was a true conservative, fiscal and political.
The greedy banks need to get slammed too. They get to have back the houses that forclosed. Those houses are now worth less than the loan. They get to resell them at a loss, to people who can manage thier money.
I have compassion. I just don't suffer fools well.

RH Oregon (Sent Thursday, April 10, 2008 12:26 PM)

Re: Sally, from Virginia:
" At least he has a plan and isn't proposing just throwing money at people who are irresponsible, like the Democrats. Why SHOULD the 95% of Americans who pay their mortgages on time bail out the 5% who don't? Is that how you want YOUR tax dollars spent?

$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$

Seriously???? How is McCain's plan NOT a bailout???

Did you see who is underwriting each of these new loans? The federal government!! Not only that, he's not just bailing out homeowners, McCain is bailing out the LENDERS/BANKS at the same time.

Quite honestly, the government getting into the private lending business is HUGE move towards big government--and it also shows McCains admitted shortcomings in understand the economy.

Obama's plan ALSO allows for rewriting loans to reflect the values of homes...but it does so within structures that already exist. Under that plan, people get their loans rewritten for lower amounts (for homes that have fallen under the loan value)--but that do it using the bankruptcy courts and THEIR EXISTING HOME LENDERS.

$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$

Jmp, Northern MN (Sent Thursday, April 10, 2008 12:27 PM)

"Because young people are much less likely to reserach him (because they are lazy) and much more likely to vote based on their feelings. "

Amy, where do you get this? Do you hate young people or something? We are not all idiots, and are the most educated, connected, and involved generation. We don't vote in blind faith, like you seem to.

MI Chick (Sent Thursday, April 10, 2008 12:28 PM)

At least he has a plan and isn't proposing just throwing money at people who are irresponsible, like the Democrats. Why SHOULD the 95% of Americans who pay their mortgages on time bail out the 5% who don't? Is that how you want YOUR tax dollars spent?
Sally, Virginia (Sent Thursday, April 10, 2008 11:07 AM)

Let's see... $30 billion to bail out home owners (not flippers)... that's about $300 per tax paying person/family. So I'd pay $300, which in return would stop the rapidly decreasing prices in homes, which, so far, has cost me over $20,000 in equity on my home that I've never missed a payment on.

So... $300 to save me $20,000 or more. You are damn right I'd support that.

But typical repub, you only care about yourself and screw everyone else. Too bad you are too narrow minded and short sighted to realize that those 5% being foreclosed on hurts YOU significantly more than you think. Sure, lets go with John McCain's plan of doing basically nothing, and lets see how much you enjoy it when you go to sell your house some day and get 20% less than it was worth when you bought it. Lets see how much you enjoy it when you want to get an equity loan and find out you have a lot less equity than you thought.

BL, Cincinnati OH (Sent Thursday, April 10, 2008 12:29 PM)

Good to see a high level of discourse here. Is it a requirement of most of the liberal posters here to call Sen. McCain by some silly name that I'd expect out of my 6 year old? McThis, McThat.

Yet, if someone has the audicity to speak Sen Obama's full name, they are required to give a full blown apology. I'm sure some of us on the right could come up with some cute playground names for Sens Hillary and Obama, but I don't see how that's productive.

Frank "Grimey" Grimes, Springfield, USA (Sent Thursday, April 10, 2008 12:29 PM)

James could not be Carville, not enough typos. J.C. is too drunk by noon to not drool on the keyboard.
But the poster is obviously on something illegal...
Hillbillery ain't no change, and Ospama's 500 Billion in entitlements ain't going to leave any change...

oregon independant (Sent Thursday, April 10, 2008 12:32 PM)

PR, Renton WA:
You are the exception rather than the rule. You made an attempt to right your mortgage situation and you are in a minority. The government SHOULD help people like you, not the greedy homebuyer who makes $35K a year and buys a waterfront estate. Not wanting to bail out irresponsible homebuyers doesn't make McCain Hoover-esque, it means he wants to be a careful steward of American taxpayer dollars.

Sally, Virginia (Sent Thursday, April 10, 2008 12:47 PM)

a of IL / hillary better hope all the good people in PA are too lazy to do any research otherwise hillary will soundly be defeated, the clintons legacy is one of lies, corruption and deception. contrary to your opinion anyone that is 'feeling good' about voting for hillary is either one of the wealthy elite repub wanna be’s or they need to reduce the load in their crack pipe.

MK,MO (Sent Thursday, April 10, 2008 1:09 PM)

All you clintonites out there that say you'll vote for McCentury if Obama is the nominee... I recommend you look at McCentury's health plan. It calls for employers not to provide assistance... instead, people would be given tax credits which wouldn't be enough to cover a family of 3. Also, for all of you out there that are government contractors... keep your fingers crossed if you or anyone in your family has a pre-existing condition... cuz you WILL NOT be covered with a pre-existing condition under McCentury's plan-- AT ALL.

ya know (Sent Thursday, April 10, 2008 1:10 PM)

If Presidents would stick to their job descriptions and stay out of economics until it's time to veto or sign, we wouldn't have so many problems.

And everyone posting here who thinks the economy is a presidential priority is an idiot, or severely uneducated. You'd think a blog supporting Obama, the constitutional law expert, would have posters who actually understand the constitution.

Sad (Sent Thursday, April 10, 2008 1:12 PM)

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