Tag: McCain

  • More on the McCain Plan

    Posted by

    Adam Levitin

    Now it appears that the McCain plan is to pay 100% of the outstanding balance on distressed mortgages (and, presumably prepayment penalties if applicable). What isn’t clear is whether the government refinancing will be for fair market value or at the old outstanding balance. If the later, it really won’t help folks with negative equity.

    If the McCain plan is going to buy mortgages at 100 cents on the dollar and then replace them with, say, 80 cents on the dollar mortgages, there’s good news and bad.

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  • Why the McCain Mortgage Refinancing Plan Won’t Fly

    Posted by

    Adam Levitin

    Last night John McCain presented a “new” plan to deal with the financial crisis. Unlike the bailout rescue bill, it is a bottom-up plan, not a top-down plan, meaning that it focuses on helping homeowners, not financial institutions.

    It’s commendable that now in October 2008, over a year into this foreclosure crisis, John McCain has recognized that homeowners need some help and is proposing to do something for them. The trouble is that his proposal won’t help.

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