Senator McCains Housing Plan

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Before you read my comments let's get something straight: I have been a registered Republican since 1990, I am a real estate entrepreneur, CEO of a mortgage and real estate company, a proponent of Gun rights, I'm pro-choice, I hate GW Bush (love Reagan), and I voted for the straight talk express in 2000, solidly Republican yet libertarian. Now that we have that clarified I can talk. I've read all three scenarios. As a republican/libertarian thinker I support on the surface the position espoused by McCain. The only problem with McCain's position (as it is with most of his positions now) is that it does nothing to relieve the pain, he just chastises us for getting ourselves into pain to begin with. That is not the position I want my leader to have. I think the time for McCain (unfortunately) is over, thanks to our version of Emperor Nero, good ole GW, and the corrupt Bush/Rove political machine. McCainian thinking just doesn't match the realities of the market, nor does capture the opportunities that now exist for revitalization of our urban cores and the movement of American cites to the new century. Of the two liberal positions I must support Obama. It actually is the most business and consumer friendly. While the thought of increased government regulation over finance and housing makes me shutter, the prospect of urban renewal and the resultant cash throw off makes me curious about how, when met with republican opposition, Obama's ideas will transform into not a Red idea or Blue idea but rather a Purple idea that works and that does not polarize. America needs ideas, not McCainian old hat let's just let things continue as they are (which in this case means downward) or in the case of Clinton, the polarizer, who despite what the public wants is going to try and force her way on you like some old mother hen (ala universal healthcare). I think I have to put it like this, a vote for McCain is a vote of no action, a vote for Clinton is a vote for divisiveness for the next four to eight years (can anyone say whitewater and the vast conservative conspiracy). While it certainly isn't the most ideal choice I think the liberal senator from Illinois will prove to have more republican red running in his veins than Blue once in office. Of the two democrats he is the only candidate who has shown that he can unite. Between Senator McCain and himself he proves to be the fresher thinker. McCain's independence will never stand up to the right wing of the Republican Party. McCain's VP choice will prove that (Charlie Christ is supported by the great Jeb Bush), otherwise McCain is the better choice. Never forget the right wing has divided our country, possibly beyond repair, and has started a miserable war in which we will gain nothing, and that has currently bankrupted our banking system. Listen Mr. and Mrs. homeowner, you want to know why you are losing your home? Because of all the $100k+ missile we are using for a place that will never prove to have any material benefit to the common American citizen. The truth is that George W. Bush, the moral majority, and the whole pack of lunatic right wing monsters we let take control of our party has bankrupted our national finance on an ill planned and conceived war and destroyed the National cohesion that was built during the original Clinton regency (a Clinton who I would vote for). To the true Republican majority I urge you to consider the position on housing as put for by the liberal senator from Illinois as the best position for the American real estate and finance markets. To the rest of America, Obama is the only choice that makes sense for the good of the country.

Above Posted By: Ferris Anderson | Sat, 5 Apr 2008 13:57:52 EST

Thank you Mel Montgomery for the bantor of your obvious distaste for the Republican party but certainly this topic crosses all political lines. Senator McCain obviously intends to apease his constituents by addressing critical issues of the day. He certainly isn't dodging the needs of the people. For many it is comforting to see him be proactive, instead of the rest of the country who are only interested in a front row seat to the Democratic "Senator He said, Senator She said" Show. When it all boils down we need to place our trust in either R-he, D-her or D-him right? And which senator would make the best leader of and for the people. Each of the three come with there own agenda.... and our right to vote is cornerstone to our society. McCain is no spring chicken, but in his age he's proven to stand by his convictions, unlike others that have flopped or those that weren't even around to cast a vote. I've always registered in a manner that allows for complete overview of the issues. I believe that your verbal tirade, in a round about way, has convinced me that McCain just might be the best Senator for the job. THANKS

Above Posted By: Johnny | Mon, 31 Mar 2008 10:20:27 EST

This is to Tom and those whos choose to stick their heads in the sand. Please look at the facts before you make yourself look stupid. Interest rates exploded as a result of horrible policies of the Federal reserve as it struggled to regulate in an era after the gold standard was abandoned in 1972. The Fed finally began to get it right in 1981 and interest rates peakled in 1982. From 1982 until 2003, with a few bried periods of increases, interest rates began their historic fall from the 1982 historic highs. Stating interest rates rose during the 80's is patently false. Politics had nothing at all to do with the direction of interest rates Fed policy does. It was no more Carters fault that rates hit 21% by 1982 at the begining of Reagans term in 1981, than it was to Reagans credit that rates began their 21 year down-trend. People reading this please hear me. We all must quit thinking that our teams "mommy & daddy" is better than the other teams mommy & daddy. It is as if we have been suckered into a fight about who's party can produce a better parent for us. I have only these questions for everyone: 1) What is the current portfolio value of the Social Security Trust Fund? 2) What has been return on the investments in this "fund" over the past 1-30 years? 3) When was the last time we received a quartely or annual report detailing the exact make up and value of this "fund" Now, after you discover have digested this. Please go to http://www.merriam-webster.com/ and look up the term "Ponzi Scheme". Then stop electing theives and liars. If you still need a mommy and daddy to tell you how to live every aspect of your life then go get your own. DO not force your parents who have proven themselves woefully incompetant on me.

Above Posted By: Philip | Mon, 31 Mar 2008 09:54:22 EST

What about the irresponsible actions of Wall street, the Treasury department and Congress. They bail out Bear-Stearns and tell the homeowner who is facing foreclosure, Tough S***!

Above Posted By: Vale | Mon, 31 Mar 2008 06:23:31 EST

It may be correct to help homeowners keep their primary residence, but not necessarily those who gave their last mortgage in 2005-2006 with the result of emptying their equity (cash-out refi) and having done so one or more times previously. These homeowners are culpable for their own misfortune.

Above Posted By: Tom | Sat, 29 Mar 2008 06:29:50 EST

I guess that Republicans keep trying to see that their way is THE way when clearly, it is not. The ideal of 'Corporate knows best', has taken our promise of 'anyone can succeed here' to it's lowest level I've ever seen in my lifetime. I did live thru some hairy times when interest rates soared in the 80's, again under Republican rules of 'we know best', you little folks really don't. I smartened up over it, some didn't. All the Republicans have espoused are what they certainly have not done when given the power. The near totality of our Congressional 'reps' see what only benefits them, their next campaign donation, the favors they get in travel, the 'very smooth lifestyle' those favors bring. Jobs included, later. I might add they sure act like 'defense attorneys' for themselves and what they've done. Just 'ask 'em' . Transparency NEEDS to occur in Congress and until it does, nothing will change. Can we vote for that? doubtful. Who was it said 'power corrupts' and 'absolute power corrupts absolutely'~true, true, true, as evidenced by our 'missing rights' and the outrageous manipulation of our very base of law, our Constitution. What next? McCain 'toughing it out' in IRAQ, while allowing NO oversight as these last 8yrs have shown? Does anyone remember how AIDS got it's 'feet' while the CDC begged Reagan for money to 'track it down and stop it'? We know how that turned out. He had his 'favs' and the possible source of AIDS at that time, wasn't among them. Our Supreme Court now has 'Bushes Wishes' first and anyway that can occur, will be the outcome, just as in Bush v Gore. Stay tuned for more nonsense in court w/McCain v ?. I'd sure like to have a President we actually elect, vs one who pulls the right strings with ALL the right companies and loot to get to the top of a blind ambition, with no skills to back it up. McCain is just more of the same, isn't he? He's a 'military guy' who wants to fight 'someone, somewhere', Iran next? He's an old man with a 'need' to feel young and strong. He's a cranky, short tempered, short sighted war monger with NO sense for finance and will appeal to many who 'like his ways'. Stay tuned for the third Bush administration. Just think! Blame the people, NOT the cause or the personal gains of those who had access to the people. It takes a LOT of time and effort to understand finance in mortgages and HELOC's and we seek experts to walk us thru. Self professed experts. His 'proposals' make sense to those 'in charge', who else? The Corporations, of course! The big donors of course! The ones who'll give 'jobs' for other favors. The ones who gave our export potential away. The ones who smiled as we racked up a 52 Trillion dollar (and counting) deficit. It is beyond me HOW those very folks suffering and paying til they have nothing left to pay would EVER put these scoundrels back in office. The 'average Joe' is tightening their own noose by doing this. For what? Why? Democrats give service to US. Guess I'm getting too political here, when it's about the Mortgage crisis and good info by ALL who share here. I will say that those interested in a good HELOC might check out Harris Bank, their rates are one per cent under prime, with an 85% equity (ltv) ratio, with a Harris account/savings/check'g. The HELOC has ZERO fees, none, nada. Not a red cent. No MB's, no appraisal fees, no cr check, none. Good, good deal. The prime rate less 1/2% if under $100K w/an account. A real nice and easy deal. The 'prime' should stay low and maybe lower for a year or two, as I see it. What might help me might help someone here. Any better out there, might differ state to state, Indiana here. (I'm a transplant NOT a Hoosier). Lol. About Dan, protection to those who were defrauded. I guess I'd have to ask, by 'who's standards'? Many here write of the laws being ignored, who feel 'swindled' and now are paying a huge price. It's 'he said, she said' and all that counts in the end is 'what's in the contract' that most of us NOT in finance can not understand. Sort of like the used car salesman who promises to 'take care of anything wrong' for a year or two. The buyer loses every time in court. What was 'said' doesn't matter. That's what happens when we 'listen to experts' who advise us 'the best way'. Call your lawyer AFTER you call your mechanic. Then proceed to hear a different take in court. WHO is the arbiter of 'who committed fraud'? Their lawyers we can't afford to fight. So there. Good'ay to all. Mel

Above Posted By: Mel Montgomery | Sat, 29 Mar 2008 05:18:02 EST

Monica said "There is a whole food chain to consider, starting with the Real Estate Agent setting a sale/purchase price for the home, the lender, the appraisal...". Real estate agents, lenders and appraisers do not set property prices. The MARKET determines the price. That price is what an informed, ready, able and willing buyer is willing to pay.

Above Posted By: Hank | Fri, 28 Mar 2008 13:28:00 EST

The first fair and intelligent step in the right direction. Not the ongoing Witch Hunt from the corrupt and misinformed. Thank you Senator McCain!

Above Posted By: David Z | Fri, 28 Mar 2008 12:58:09 EST

Right on, Mr. McCain! In the end, the only people who should be "protected" are those who were fraudulantly taken advantage of. Most of this mess was caused by greed or people that were willing to ignore the risk based on some boom times in the industry. We have all the regulations in place to deal with fraud, but the agencies lack the resources to enforce them.

Above Posted By: Dan | Fri, 28 Mar 2008 12:36:34 EST

Wow I'm surprised I actually agree with McCain...although the whole pro-war thing still makes me not able to vote for him in November. I don't necessarily agree with not modifying FHA to decrease down-payment, but I do agree speculators should NOT be bailed out, but rather the bailouts should be limited in most cases to those that were the victims of predatory lending practices.

Above Posted By: April | Fri, 28 Mar 2008 12:32:55 EST

McCain's approach makes sense as long as the regulatory process is kept to a minimum. When I started in Real Estate closing costs outside the Agents fees were between .5 to .75%for a buyer and 1.75-2% for a seller. Today after the regulatory process has gotten involved it can be as high as 3% for a buyer and 6% for a seller. Considering value increases, the actual dollars spent far exceed the inflationary pressures. Thus point 4 of his plan is crtical.

Above Posted By: Hal | Fri, 28 Mar 2008 12:09:24 EST

hmmmm..... seems a constant theme from respondents to most of the issues viewed on this site are emphatically suggesting that government should stay out of the mortgage arena... and how politicians should get off the soap box that they'd likely abandon once elected. McCain's outline of solutions seems pretty much on spot for blue collar America, and rightly so. I was one of those "speculators" I bought investment property at the height of it all. You win some you lose some... I never expected the gov't to cover my losses. Many others that took a loss realized it long ago...if they were smart they did the same as I by minimizing the blow, getting over it and hoping to be smarter/luckier next time. This "crisis" has stewed for a while now, I believe that McCains outlined proposal is sound, practical and fair. It's a "real time" starting point for the future of a stronger housing market and rightly suggests that we stop beating the same dog.

Above Posted By: Red | Fri, 28 Mar 2008 11:23:07 EST

I was a voice in the wilderness when I went to Senator McCain about mortgage fraud. While my case ML vs. Astoria Federal was in Federal Court and under their jurisdiction (May 8 1997 thru Feb 23 1998) (my case was removed from NY state court on May 8 1997) Astoria Federal continued on in NYState Court and auctioned off my two NYC Condos on Sept 3 1997 even though the law prohibits that. It is established by the US Supreme court in Eliot vs Piersol that when a Court is without jurisdiction it MUST Not act. MaCain could not bother with this problem. If he doesn't know the fundamental prinipals of the Courts, and what the principals of our US Constitution are- how is he going to govern this great country, as President.?

Above Posted By: Marilyn | Fri, 28 Mar 2008 11:19:09 EST

I am no political analyst but it seems to me the George's post above has it right, McCain seems to be follwing suit right behind Bush which is obvouisly not where we want to go. The position we are in with the economy and the housing market we havent seen before, the combination of the two that is. I believe in what the republicians have always stood for, the economic strength of the nation. McCain is not a true conservative, and a 74 year old president will most likely not bring the new fresh change needed in our country. New problems need innovation not old policy from old presidents. We are in a recession, why everyone seems to skirt the issue i dont know. Dropping rates and driving inflation up donsn't seem like a fix to me, bring back Greenspan. As far as for us in the mortgage industry there is no clean cut answer for us as brokers except maybe Freddie and Fannie to put a stop to pricing adjustments and predications above and beyond those they set. Lenders are adding pricing adjustments to Freddie and Fannie standards and then selling it back to Freddie and Fannie, which doesnt help anyone but the lenders. Thank for listening to my opinions.

Above Posted By: Sal | Fri, 28 Mar 2008 11:17:26 EST

Although I like Mr. McCain, to me, it seems his 4 point plan only touchs the surface of the other issues that have contributed to this housing debackle. There is a whole food chain to consider, starting with the Real Estate Agent setting a sale/purchase price for the home, the lender, the appraisal (trying to meet the price set by the RE Agent), the marketing of these crazy new mortgage products (sometimes to people that might not be suited for them), marketing the new products to Wall Street's Institutional Investors (not always getting the cash flow or yield they expect). I don't necessarily believe in Gov't intervention. But something has got to give here. Short term liquidity, yes. But we still need a long-term viable industry wide solution for long-term health and well fair of the banking system. Maybe the answer is new Industry standards across the food chain? Without a long-term solution, we may end up back in this very same position in another decade or two. THe question is, do we want to gamble on the financial security of the banking system over the next few decades?

Above Posted By: Monica | Fri, 28 Mar 2008 10:56:21 EST

Everything I hear from McCain gives me the impression that he does not care about the American economy. I have voted Repulican all my lfe (I'm 54) but, as bad as Clinton and Obama seem to be in the Liberal areaa, Mccain will run this country into the ground with his economic ideals. He appears to be Bush on Steroids and this country doesn't need anymore of this. Unless he comes around, I.m voting for the opposition whoever that may be.

Above Posted By: George | Fri, 28 Mar 2008 09:35:52 EST

McCains proposal is not all bad, but the fourth item should be tempered with some kind of short term fix. Increasing capital reserves is probably the right thing to do in the long term, but right now we need an influx of liquidity. In other words, we're already in this mess...how is decreasing liquidity going to help us pull out of it?

Above Posted By: Don | Fri, 28 Mar 2008 09:27:05 EST

Senator McCain Vows no Politics with Housing Crisis

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