The Housing Chronicles Blog: McCain announces plans to buy failing mortgages directly

Tuesday, October 7, 2008

McCain announces plans to buy failing mortgages directly

As Barack "That One" Obama (apparently no relation to "That Girl," played in the late 1960s-early 70s by actress Marlo Thomas) sat on a nearby stool at Tuesday night's debate, John McCain outlined a bold proposal to spend up to $300 billion to purchase unaffordable mortgages directly from lenders and homeowners and replace them with the fixed-rate variety. From an LA Times story:

The Republican nominee, who long has railed against excess government spending, outlined a program that his campaign said would cost roughly $300 billion.

As Sen. Barack Obama, the Democratic nominee, watched from a nearby stool, McCain promised to launch a major federal effort to purchase failing mortgages directly from homeowners and mortgage providers and replace them with less expensive, fixed-rate mortgages....

"Is it expensive?" McCain asked. "Yes. But we all know, my friends, until we stabilize home values in America, we're never going to start turning around and creating jobs and fixing the economy."...

McCain's bold proposal carries considerable political risk. Democrats have sought to portray him as erratic and impulsive, and his abrupt unveiling of such a complex plan may fuel those charges.

Only time will tell...

1 comment:

Merge Divide said...

I wonder why John McCain didn't put forth this "bold" proposal while he was jet-setting into DC to "save" the bailout bill.

I think I know why... it's because Barack Obama suggested it on September 24th:

At a Sept. 23 press conference, Obama said: "For example, we should consider giving the government the authority to purchase mortgages directly instead of simply purchasing mortgage- backed securities. In the past, such an approach has allowed taxpayers to profit as the housing market recovered. This is not simply a question of looking out for homeowners; it's doubtful that the economy as a whole can recover without the restoration of our housing sector, including a rebound in the home values that have suffered dramatically in recent months."


And in an Oct. 1 statement, Obama repeated the idea. "We also must do more than this rescue package does to help homeowners stay in their homes. I will continue to advocate bankruptcy reforms to help families stay in their homes and encourage Treasury to study the option of buying individual mortgages like we did successfully in the 1930s,"


SERENDIPITY will set you free.