McCain's plan on the mortgage crisis

Discussion in 'Congress' started by oreo, Oct 8, 2008.

  1. oreo
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    oreo Gold Member Supporting Member

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    Thought I would share this. Received e-mal from McCain campaignn on mortgage crisis.

    My Friends,

    Millions of Americans on Main Street are feeling the effects of our current economic crisis largely brought on by corruption and greed at Fannie Mae, Freddie Mac and Wall Street. Our next president must come into office with a plan to address the very root the failing housing market.

    Last night, during my debate with Senator Obama, I announced my plan to fix the root of our problem and I'd like to share a little more with you today.

    If elected president, I will direct my Treasury Secretary to implement an American Homeownership Resurgence Plan to keep families in their homes, avoid foreclosures, save failing neighborhoods, stabilize the housing market and attack the roots of our financial crisis.

    America's families are bearing a heavy burden from falling housing prices, mortgage delinquencies, foreclosures, and a weak economy. It is important that those families who have worked hard enough to finance homeownership not have that dream crushed under the weight of the wrong mortgage.

    For those that cannot make inflated payments or their mortgage exceeds the value of their home, mortgages must be re-structured to put losses on the books and put homeowners in manageable mortgages.

    This Resurgence Plan would purchase mortgages directly from homeowners and mortgage servicers, and replace them with manageable, fixed-rate mortgages that will keep families in their homes.

    By purchasing the existing, failing mortgages the resurgence plan will eliminate uncertainty over defaults, support the value of mortgage-backed derivatives and alleviate risks that are freezing financial markets.

    I am ready to lead our country out of this financial crisis and I am ready to work with anyone and everyone who will help. Together, I know we can work together to find solutions for these challenging times. Please do your part today and spread the word about my new plan by forwarding this email on to your neighbors, friends, family and coworkers. Thank you for your time and support.

    Sincerely,

    John McCain
     
  2. editec
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    editec Mr. Forgot-it-All

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    I thought it interesting that both Obama and McCain suggested that they'd tap Warren Buffet for Sec of Treasury.

    I can't help but think Mr Buffet is far too smart to allow himself to be put into a position where he's taking orders for either of those guys.

    Still a hard headed realist like Buffet seems like just the kind of guy this nation ought to have in charge of the economy.

    BOTH of those candidates score points with me for suggesting him as a possible candidate, to be honest.

    But one cannot help but note that Buffet is supporting Obama.

    Maybe he knows something (a whole lot of somethings) we don't know, eh?

    I trust that guy, I really do.
     
    Last edited: Oct 9, 2008
  3. Ravi
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    Ravi Diamond Member

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    Wow, McCain wants to buy over priced mortgages directly from the homeowners with taxpayer money, thereby bailing out the banks that made and own the bad loans.

    Did this guy ever have a conservative bone in his body?
     
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  4. DavidS
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    DavidS Anti-Tea Party Member

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    It's called the rescue package, Ravi. It was passed last week.

     
  5. sealybobo
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    sealybobo Diamond Member

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    Don't let McCain or Bush fool you. Just like with Iraq, they may say Obama is wrong but in the end, they'll do exactly what the Democrats are saying we should do, they just won't do it when the Democrats suggest it. Instead they'll pretend it was their idea.

    Look, in Texas they are now bailing out the homeowners. Giving them less than 4% interest on their sup prime loans.

    Financially troubled North Texas homeowners with Countrywide loans could avoid foreclosure and refinance to lower mortgage payments under a deal struck with attorneys general in seven states.

    "This isn’t going to solve all mortgage-related problems, but it is a step down the path helping Texans stay in their homes and continue to work to build the American dream," Texas Attorney General Greg Abbott said Monday at a news conference in Austin.

    The $8 billion cost of the plan would mostly come from losses that Bank of America and other holders of Countrywide home loans would take as homeowners are reconfigured into more manageable loans, said Terry Francisco, Bank of America spokesman. Bank of America now owns Countrywide Financial.

    An estimated 30,000 Countrywide Financial Corp. loan holders in Texas could participate in the program, according to the Texas attorney general’s office.

    "As our nation’s economic turmoil demonstrates, our economy is only as sturdy . Helping eligible Texans pay . as our nation’s home values," Abbott said. ". their mortgages and stay in their homes will help our great state weather this financial storm."

    The plan could make it easier to refinance for people who owe more on their loans than their home is worth. A homeowner who bought a house for $300,000 that is now worth $200,000, for example, could now refinance for a $180,000 loan, Francisco said. Countrywide loan holders such as Bank of America would absorb about a $120,000 loss in that example.

    Distressed homeowners might also be able to get lower interest rates on their mortgage, or change adjustable rates to fixed terms, he said.

    Loan-modification program could help Countrywide customers avoid foreclosure | Top Stories | Star-Telegram.com
     
  6. Ravi
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    Ravi Diamond Member

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    Yeah, but the details haven't been decided. I can see negotiating with the banks to refinance these mortgages at a fixed, affordable rate...kind of like Bank of America is doing with the loans it bought from the bust Countrywide...but there is nothing anywhere written that says we are planning on taking overpriced mortgages off the hands of the banks that made the bad loans.
     
  7. DavidS
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    DavidS Anti-Tea Party Member

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    We've spent nearly 3 trillion dollars already this year without mortgage relief, economic stimulus packages, bailouts, loans to jp morgan, rescue packages... NONE of this, I repeat NONE of this was included in our 2007-2008 budget. We have, in the past few months, added on 3 years worth of American budget onto our national debt. The national debt calculator in times square has run out of numbers. And this guy, this joker wants to spend an additional $300 billion on people who were too stupid to get a fixed rate mortgage or just rent until their credit improved? What about everyone else who got a fixed rate mortgage and the value of their home has collapsed? Is McCain going to bail them out as well?
     
  8. Ravi
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    Ravi Diamond Member

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    I'm not totally sure this would be an additional $300 billion...but it is an extremely unpopular thing to do, more bailing out Wall Street once again.
     
  9. editec
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    editec Mr. Forgot-it-All

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    Hey I want a 4% fixed mortgage, too.

    And while we're at it, I'd like remitance all for the money I paid for 15 years at 10%, too.

    Pay me the interest I paid in that long haul, and I'd not only have enough money to pay off my current 5.5% mortgage, I'd have enough dough to buy another house on top of it.

    Where do I sign up?
     
  10. xsited1
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    xsited1 Agent P

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    So there are two Democrats running for President this year. What a shock!
     

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