McCain Proposes Mortgage Rescue Plan

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Sen. John McCain (R., Ariz.) has from time to time in his campaign for the White House proposed populist plans -- beginning with his gas-tax holiday in the spring. On Wednesday, his campaign unveiled its most recent populist iteration: the McCain Resurgence Plan, also known as the Homeowner Resurgence Plan.

The plan would offer assistance to struggling homeowners, leading to a resurgence in homeownership. It would use up to $300 billion of the money already allocated in the present $700 billion rescue plan authorized by Congress last week.

McCain's Web site briefly describes the working of the plan:

"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."

The plan would be available to homeowners under two circumstances: 1) the home is a primary residence, and 2) they can provide proof of credit worthiness at time of mortgage origination. Fannie Mae (FNM Quote) or Freddie Mac (FRE Quote) would oversee the new fixed-rate mortgages. ...