McCain to unveil mortgage plan
Posted: Thursday, April 10, 2008 10:46 AM by Domenico Montanaro
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.