McCain Joins The Socialists
Although it had apparently been spoken of by McCain last spring, McCain decided to bring his hair-brained scheme of housing socialism into prime time tonight. Comrade McCain's plan to further socialize the housing market was spelled out in detail via a press release issued during tonight's debate:
AMERICAN HOMEOWNERSHIP RESURGENCE PLAN
John McCain will direct his Treasury Secretary to implement an American Homeownership Resurgence Plan (McCain 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. The existing debts are too large compared to the value of housing. For those that cannot make payments, mortgages must be restructured to put losses on the books and put homeowners in manageable mortgages. Lenders in these cases must recognize the loss that they’ve already suffered.
The McCain 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 McCain resurgence plan will eliminate uncertainty over defaults, support the value of mortgage-backed derivatives and alleviate risks that are freezing financial markets.
The McCain resurgence plan would be available to mortgage holders that:
· Live in the home (primary residence only)
· Can prove their creditworthiness at the time of the original loan (no falsifications and provided a down payment).
The new mortgage would be an FHA-guaranteed fixed-rate mortgage at terms manageable for the homeowner. The direct cost of this plan would be roughly $300 billion because the purchase of mortgages would relieve homeowners of “negative equity” in some homes. Funds provided by Congress in recent financial market stabilization bill can be used for this purpose; indeed by stabilizing mortgages it will likely be possible to avoid some purposes previously assumed needed in that bill.
The plan could be implemented quickly as a result of the authorities provided in the stabilization bill, the recent housing bill, and the U.S. government’s conservatorship of Fannie Mae and Freddie Mac. It may be necessary for Congress to raise the overall borrowing limit.
As an example, let's say your neighbor, who bought a new car every other year and took an annual Hawaiian vacation, bought a $300,000 house with 5% down ($15,000) and financed his closing costs ($12,000). Unfortunately, the market has driven the price of your neighbor's house down 20%. Your neighbor now owes $297,000 on a house that's only worth $240,000. Your neighbor is upside down $57,000 on his house. Hold everything! Here comes Comrade McCain to the rescue! Comrade McCain says your neighbor should be forgiven the $57,000 difference and given a lower interest rate to boot. After all, everyone is 'entitled' to own their home, and this is, of course, for the common good.
You, on the other hand, bought the same $300,000 house with 20% down ($60,000) that you had managed to save by doing without that new car every other year and by postponing your Hawaiian vacation until after you had enough to buy your house. You also paid your closing costs out of pocket to avoid going over the 80% loan-to-value threshold that triggers mortgage insurance. You now owe exactly what the house is worth ($240,000). Comrade McCain says too bad for you chump; shut up and keep paying on your 6% mortgage like a good boy. And by the way, please send us just a little extra in your taxes because we had to bail out your neighbor who needed that new car every other year and his annual Hawaiian vacation. It is, after all, for the common good.
I knew McCain was no conservative, but did not realize what a lefty he truly was. I'm surprised McCain didn't agree with Barack Hussein 'Barry' Obama during the debate when 'Barry' proclaimed health care in America to be a 'right' for everyone.
Unbelievable CRAP (read: Communists raping American people).
Posted by Rick | October 8, 2008 02:05 AM