McCain Seeks Aid for Some Homeowners

Associated Press (04/10/08); Quaid, Libby
Homeowners with burdensome mortgages would have an opportunity to obtain more manageable loans that reflect the value of their property under a plan proposed by Sen. John McCain, R-Ariz., on April 9. The original lender and the government would also benefit because they would receive a certificate that guarantees a share of the value of the original loan. McCain--who believes market forces should be allowed to resolve the crisis in the mortgage industry--said that lenders will need to write off losses, restructure balance sheets and raise more capital. Meanwhile, the presidential hopeful suggested that the Justice Department should create a task force to investigate mortgage lending and securities firms for criminal wrongdoing, such as defrauding homeowners or forging loan application documents.