Obama hits McCain's mortgage plan

Democrat Barack Obama, in a series of rallies across Ohio and in a new TV ad, is bashing Republican rival John McCain's new plan to help homeowners stay in their houses.

In Tuesday night's debate, McCain proposed spending about $300 billion of the $700 billion authorized in the financial rescue plan last week on a program in which the federal government would directly buy troubled mortgages and then refinance them on terms that would enable homeowners to make the payments.

The proposal has drawn criticism because taxpayers would cover any losses, not the financial institutions that hold the original mortgages, but McCain argues that until the foreclosure crisis is resolved, the economy won't recover.

While Obama had earlier expressed interest in such a plan and his campaign initially described it as nothing new -- something already allowed in the bailout package -- by Wednesday it had trained its guns on it as a boondoggle for mortgage issuers, including some that committee fraud.

The 30-second ad, which is to air on national cable starting today, opens with the announcer saying, "In a time of crisis, our leaders’ judgment is tested. On Tuesday – an announcement."

The ad shows McCain at the debate saying, “I would order the Secretary of the Treasury to immediately buy up the bad home loan mortgages in America."

"On Wednesday, the details," the announcer continues. "McCain would shift the burden from lenders to taxpayers -- guaranteeing a loss of taxpayer money. Who wins? The same lenders that caused the crisis in the first place. Putting bad actors ahead of taxpayers?"

"We can’t afford more of the same," the announcer concludes, over an image of McCain with President Bush.