This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

Obama Housing Speech to Show Policy Shift As Home Prices Rise

NEW YORK ( TheStreet) -- When President Obama unveils his plans for the housing market in Phoenix Tuesday afternoon, there will be a noticeable shift in his agenda.

With home prices now well off the bottom, there will be less talk of foreclosure prevention, principal reduction and loan modifications and he will likely stay away from Wall-Street bashing.

Instead, his focus will now be on long term goals, such as improving access to mortgage credit and building a sustainable housing finance system.

According to a housing plan released to reporters, the President will continue to push for a broader refinancing program that will provide relief for "responsible" homeowners with private mortgages who are underwater but current on their payments.

But most of his focus will be on helping borrowers access mortgage credit, which has been scarcely available since the 2008 crisis.

The President will call for greater clarity in mortgage regulations in order to encourage banks to lend to borrowers.

The Consumer Financial Protection Bureau has already published its qualified mortgage rule, but until the qualified residential mortgage rule is written, the secondary market for all but the most pristine-quality mortgages will remain tight.

Obama is also expected to support a new "Back to Work" initiative at the Federal Housing Administration that will allow borrowers who have been re-employed and have demonstrated strong payment histories in the past 12 months to qualify for a mortgage through the FHA, as opposed to the current waiting period of 3 years.

Significantly, Obama is likely to share the Administration's vision for the future of the housing market.

There has been very little talk of this from the White House, except for a white paper released in 2011, so this is a welcome change.

The upshot is, the future housing finance system will be one with a far more limited role for the government.

The President will call for the end of Fannie Mae (FNMA) and Freddie Mac (FMCC), the housing finance giants that went bust during the boom years leading to a $180-billion bailout in 2008.

1 of 3

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 17,156.85 +24.88 0.15%
S&P 500 2,001.57 +2.59 0.13%
NASDAQ 4,562.1890 +9.43 0.21%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs