McCain shows as one of three cosponsors of the legislation spearheaded by Chuck Hagel. A quick read of it does not suggest to me that the authors saw a pending catastrophe, but even if they did it was very odd to find that John McCain's name did NOT appear on the legislation when it was introduced. In fact he cosponsored this a full 16 months *after* it was introduced for reasons I don't have time to figure out, but given the time frame it would appear this was done more for political affect than anything else.
Here's the official record:
Title: A bill to address the regulation of secondary mortgage market enterprises, and for other purposes.
Sponsor: Sen Hagel, Chuck [NE] (introduced 1/26/2005) Cosponsors (3)
Latest Major Action: 7/28/2005 Senate committee/subcommittee actions. Status: Committee on Banking, Housing, and Urban Affairs. Ordered to be reported with an amendment in the nature of a substitute favorably.
COSPONSORS(3), ALPHABETICAL [followed by Cosponsors withdrawn]: (Sort: by date)
Sen Dole, Elizabeth [NC] - 1/26/2005
Sen McCain, John [AZ] - 5/25/2006
Sen Sununu, John E. [NH] - 1/26/2005
More from the news: http://www.politifact.com/truth-o-meter/article/2008/sep/17/mccains-warning-fannie-and-freddie/