McCain’s Bad-Mortgage Buyout

The second presidential debate just ended.

John McCain threw out a new policy proposal tonight that came as a surprise: He announced that he’d direct the Treasury Department to buy up “bad mortgages” to allow homeowners in danger of losing their homes to hold onto them.

How would the McCain proposal work? Is he referring to a write down or something else? He said “we have to go out into the housing market and buy up these bad loans.” Where did this come from?

Does anybody know how this jibes with his party’s antipathy toward assisting individual homeowners in distress?

Because of tonight’s format, the statement got no follow-up.

But it’s quite a reversal of McCain’s pronouncements at the outset of the campaign and the “dial testing” used by the cable networks showed that Republicans had a really negative reaction to his surprise policy proposal.

Alice Chasan served as editor and associate publisher of Shelterforce from 2007 to 2008.


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