In perhaps a softening of his stance on the issue, McCain is now willing to doll out “relief” to some homeowners caught up in the sub-prime mortgage mess.
Here’s the report on it from Yahoo News:
NEW YORK – Giving a peek at a broader economic plan, Sen. John McCain is calling for federal aid for well-meaning homeowners with what he called “burdensome mortgages.”
“There is nothing more important than keeping alive the American dream to own your home,” the likely GOP presidential nominee said in remarks prepared for a roundtable discussion Thursday at Windows We Are Inc. in Brooklyn.
“And priority No. 1 is to keep well-meaning, deserving home owners who are facing foreclosure in their homes,” the Arizona senator said.
McCain on Thursday proposed a plan to offer deserving people the chance to trade a burdensome mortgage for a manageable loan reflecting the market value of their home.
McCain’s plan would benefit the government and original lender by giving them certificates for part of the loan’s original value. If the homeowner sold for more, he or she would benefit along with the government and the original lender.
“It is built on the reality that homeowners should have an equity capital stake in their home,” he said. “Homeowners would end up with a 30-year mortgage and an equity stake in their home. The new lender would receive a federal guarantee of the mortgage.
“And the taxpayer gets a benefit if the sale value ever recovers,” he said.
Up to this point, McCain had been the one lone holdout against giving out some type of aid for sub-prime mortgage holders possibly facing foreclosure.