McCain plan to buy mortgages under fire

Faster. Better. Together.
Inman Connect San Francisco, Jul 17-20, 2018

The Obama campaign pounced Thursday on Sen. John McCain's proposal to wipe out $300 billion in negative equity and save homeowners from foreclosure by buying up mortgages directly from mortgage servicers.Unlike the $300 billion "Hope for Homeowners" expansion of FHA loan guarantees that kicked off this month, the McCain Resurgence Plan wouldn't require lenders to write down the principal of loans it refinanced.McCain would shift the burden from lenders to taxpayers, guaranteeing a loss of taxpayer money," the Obama campaign said in a television ad attacking the plan. "Who wins? The same lenders that caused the crisis in the first place."Some critics of the Hope for Homeowners plan have said that it will help only a fraction of the borrowers envisioned by Congress. Many lenders wont participate, critics say, because they won't agree to write down loans to be refinanced.McCain, R-Ariz., rolled out his proposal during Tuesday's debate with Sen. Barack Obama, D-Ill...