When Obama stepped in as the US President in 2008, home prices were crashing, foreclosures were on record high. Former President Bush had just initiated the bailout of Fannie Mae and Freddie Mac, the government-backed entities that agree to repay mortgages in the event that the original borrower fails to pay their obligations.With the housing market suffering, the Obama administration placed several housing policies to help homeowners from going under. After four years in office, the US housing economy has yet to recover.One of the things that is standing in the way of full housing recovery is tight credit. Mortgage rates are at historic lows, but there are too many potential home buyers that are not able to take advantage of these low rates because of damaged credit.President Obama didn't tackle the issue of housing during his campaign. With that being said, Fannie Mae and Freddie Mac are expected to remain through the mid-term elections in 2015.David Stevens, President and CEO of the Mortgage Bankers Association said that the MBA is asking President Obama to appoint a federal housing policy coordinator who can make sure that there will be a better communication between federal and regulatory agencies to effectively implement different housing policies beneficial to home owners. (Source: www.cnbc.com)As for millions of underwater borrowers, the Obama administration has consistently said it wants to extend mortgage refinancing to take advantage of today’s record low rates. (Source: www.cnbc.com)
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