McCain plan to aid ‘deserving’ debtors

[flashl]

Source: Financial Times

John McCain, the Republican’s presidential nominee, on Thursday sought to push back against criticisms of his alleged do-nothing approach to the US housing crisis, unveiling a plan that would provide federal help to “well-meaning” homeowners facing foreclosure.

Mr McCain’s plan, which is much closer to the Bush administration’s stance than to those of Hillary Clinton or Barack Obama, marks a change of thinking from his last big speech on the crisis two weeks ago, where he said the taxpayer should not bail out people who had made bad decisions.

Under his proposal, homeowners could apply directly to the federal government to restructure unaffordable loans. “There is nothing more important than keeping alive the American dream to own your home,” said Mr McCain. “Priority number one is to keep well-meaning, deserving homeowners who are facing foreclosure in their homes.”

Both Democratic candidates attacked Mr McCain’s plan as a “half measure” that would exclude most victims of the crisis. Under his proposal only homeowners who were creditworthy when they took out their original loan would be eligible for help – a move, say Democrats, that would exclude victims of predatory lending, who are estimated to make up more than half of the US’s 2.36m mortgage holders in arrears.

FT

Read more: http://www.ft.com/cms/s/0/133d8252-074a-11dd-b41e-0000779fd2ac.html

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The bar for deserving was set last year when allowing Countrywide to use 'No Doc' loans as collateral to borrow billions from the Federal Home Loan Bank.

[zanne]

1. I think he's earned the "flip flopper" meme.

Remember Al Gore!

[axollot]

3. I think you're correct on the flip-flopping!

And lets not forget how they targetted John Kerry with that!

Cheers
Sandy

[axollot]

2. Oh God - - We REALLY don't need him as a president! n/t

[liberal N proud]

4. Who defines the "deserving" debtors?

No so much flip-flopping as a way to play the system to help cronies somewhere. Follow the money

[tanyev]

5. First they'll check if the debtor is on the RNC mailing list.

[DaveJ]

6. Exactly

It also amazes me how there is no attention paid to the working poor who will die homeless no matter what.

[lonestarnot]

7. Then compare that to recorded phone conversations.

[Robbien]

8. Talk about nanny state politicos

Only good little boys and girls will be allowed to be given a helping hand. But if we corrupt politicians who are living the high life in the pockets of lobbyists decide that one is a bad little boy or girl, we will give that naughty person a map to the nearest tent city.

[PSPS]

9. McCain: Forget bush's $300. Vote for me and I'll give you a house!

Both funded, of course, by taxpayers.