McCain mortgage plan hit from both sides

Oct. 10, 2008 at 5:17 PM   |   Comments

WASHINGTON, Oct. 10 (UPI) -- John McCain's plan to have the U.S. government buy troubled mortgage loans has drawn criticism from both sides of the political spectrum.

The Republican presidential nominee's plan, which he said would see the government purchasing failing mortgages and reissuing them at the lower current market value and with a manageable interest rate, has been criticized by several prominent economic conservatives, CNN reported Friday.

Conservative commentator Michelle Malkin declared the plan "rotten" and the editors of The National Review wrote on the conservative publication's Web site described the plan as a "gift to lenders who abandoned any sense of prudence during the boom years."

The Arizona senator's mortgage plan also drew criticism from Democrats after his campaign said the plan followed in the footsteps of Sen. Hillary Clinton, D-N.Y., and others, The Washington Times reported.

Clinton called the comparison "offensive" and said McCain's plan differs wildly from the one she proposed on the Senate floor in September.

Meanwhile, McCain's rival, Sen. Barack Obama, D-Ill., said McCain "actually wants the government to pay the full face value of mortgages on the books, even though they're not worth that much anymore, so banks wouldn't take a loss."

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