Blunt Skeptical Of McCain Mortgage Plan

House Minority Whip Roy Blunt (R-MO) -- who cited John McCain as a critical player in the passage of the bailout package, is raising some questions about McCain's proposal to buy $300 billion of bad mortgages.

Transcript from the Stephanopoulos show, where Blunt appeared with House Financial Services Chairman Barney Frank:

 

Stephanopoulos: Congressman Blunt, Senator McCain did suggest this week buying up the mortgages at face value. Do you agree with that or what congressman frank is saying right now?

Blunt: I think what Senator McCain talked about this week was essentially in several pieces of law already. Looking at mortgages that the government could simply take over. Clearly buying mortgages for no more than their value. Somebody needs to take the loss here. It needs to be the person that had the bad judgment of making that loan, of buying those poorly put together mortgage securities. There's going to be loss here and it it shouldn't be borne by the taxpayers.

Stephanopoulos: So then you don't agree with Senator McCain’s plan?

Blunt: ...We need to look at this closely. There's merit to the McCain plan, that's why some of it is already in the FHA reauthorization bill. Some of that flexibility is here. But you have to be sure again that taxpayers are protected and I think when you see the specifics of the McCain plan you'll see those kinds of protections.