McCain Mortgage Plan Would Bail Out Homeowners

Los Angeles Times (10/08/08); Drogin, Bob; Reynolds, Maura
Sen. John McCain, R-Ariz., proposed during the Oct. 7 presidential debate to have the federal government spend $300 billion to help keep struggling borrowers in their homes. As part of the American Homeownership Resurgence Plan, the government would pay homeowners and mortgage lenders in full for their failing mortgages. The initiative would enable lenders to remove the bad mortgages from their balance sheets, and homeowners would be able to refinance into fixed-rate loans insured by the government. McCain said the plan is expensive, "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."