Sounds more like Dennis Kucinich's plan to me, "starting from the bottom up". McCain is full of shit....McCain is corporate man, their tool, he would never implement this plan, ever.
McCain is going after the "undecided" Independents, moderates & the many Dems who won't vote for a black man - NOT republicans, McCain already has them, (no matter how much they scream).http://www.sfgate.com/cgi-bin/article.cgi?f=/c/a/2008/10/09/BU9B13DNI7.DTL&type=politics&tsp=1McCain campaign outlines mortgage-rescue plan(10-08) 18:12 PDT -- Strange bedfellows, indeed.
Sen. John McCain's plan to help people avoid foreclosure drew praise from liberals for tackling the problem's source, while conservatives called it a government subsidy of irresponsible lenders and borrowers.
During Tuesday's presidential debate, McCain, the Republican nominee, said he would order the Treasury secretary "to immediately buy up the bad home loan mortgages in America and renegotiate (them) at the new value of those homes, at the diminished value of those homes."
Douglas Holtz-Eakin, McCain's senior domestic policy adviser, said on Wednesday that McCain's plan calls for the government to pay full face value for troubled mortgages on properties that are now worth less than the loans. That's a big distinction from a congressional plan that took effect on Oct. 1 and requires lenders to take a significant loss, reducing the loan values to 90 percent of the homes' current appraised values. Another key difference: Congress' plan requires homeowners who receive a refinanced loan to share any future appreciation in home value with the government; McCain's plan does not.
Holtz-Eakin said that under McCain's plan, homeowners would get new fixed-rate mortgages based on the homes' current value with an interest rate of about 5 percent, a percentage point less than the average current rate. The government would pay the difference between the original mortgage amount and what the homes are now worth.
Avoiding foreclosure
Holtz-Eakin said the goal is to directly help struggling homeowners avoid foreclosures and their damaging effects on neighborhoods, as well as to stabilize the values of homes and mortgage-backed securities.
Right-wing blogs and commentators looked askance at the idea.
McCain "took that position on the housing issue of buying up everybody's mortgage," said former Arkansas Gov. Mike Huckabee on Fox News. "Conservatives are scratching their heads today and saying, 'What happened?' "
At the Center for American Progress Action Fund, an offshoot of a liberal Washington think tank, there was more support for McCain's approach.
"It's refreshing to hear that kind of insight and understanding of the root of the problem," said Sarah Rosen Wartell, executive vice president and managing director for economic policy. "There were a number of key observations he made that were dead right."
(More)
http://www.sfgate.com/cgi-bin/article.cgi?f=/c/a/2008/10/09/BU9B13DNI7.DTL&type=politics&tsp=1
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