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 re-structured 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.
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 re-structured 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.
| Homeownership Resurgence Plan by John McCain |
| FHA Loan Programs |
