Palin Gets McCain Stance on Homeowner Protections Wrong


October 03, 2008 12:46 AM

ABC News' Teddy Davis Reports:

Sarah Palin got her facts wrong in Thursday's debate with Joe Biden when
discussing where John McCain stands on new protections for homeowners
facing foreclosures.

The Alaska governor incorrectly made it sound like McCain supports
giving bankruptcy judges the power to rewrite mortgage payment terms on
first homes.

He doesn't.

The McCain campaign confirms to ABC News that Palin misstated McCain's
position.

"No, that is what is called the cramdowns, which is so objectionable
that Obama didn't even want it jammed into the stabilization bill," said
McCain spokesman Brian Rogers when asked if McCain supports giving
bankruptcy judges the power to re-adjust the interest rate and principal
to help people stay in their homes.

Palin's mistake came when the debate's moderator asked her if Biden was
right in thinking that she and McCain oppose giving bankruptcy judges
this new power.

"[W]e should be allowing bankruptcy courts to be able to re-adjust not
just the interest rate you're paying on your mortgage to be able to stay
in your home, but be able to adjust the principal that you owe, the
principal that you owe," said Biden. "That would keep people in their
homes, actually help banks by keeping it from going under.

"But John McCain, as I understand it," he continued, "I'm not sure of
this, but I believe John McCain and the governor don't support that.
There are ways to help people now. And there -- ways that we're offering
are not being supported by -- by the Bush administration nor do I
believe by John McCain and Governor Palin."

"Governor Palin, is that so?" asked PBS' Gwen Ifill.

"That is not so," said Palin, "but because that's just a quick answer."

The Alaska governor then quickly changed the subject to energy.