Obama Gives Go Ahead On Housing Reform

President Obama will announce Monday that he has given the federal government’s main housing agency the authority to help out homeowners in danger of losing their homes.

The plan involves directing the Federal Housing Finance Agency to reduce interest rates on mortgages for those who make their payments on time. Specifically, it modifies the government’s Home Affordable Refinance Program to expand eligibility for those whose property values have fallen below the remaining balance of their loan.

“We know that there are many homeowners who are eligible to refinance under HARP and those are the borrowers we want to reach,” said FHFA Acting Director Edward J. DeMarco.

(The New York Times’ Jackie Calmes takes a closer look at the plan here)

The FHFA was created in 2008 to oversee mortgage giants Fannie Mae and Freddie Mac after they were seized by the federal government in the aftermath of the nation’s housing crisis. Republicans have been critical of the decision to place the twin lenders into conservatorship, and have called on the administration to present a plan to wind Fannie and Freddie down. However, that may be easier said than done, given that the agencies are currently in possesion of roughly $4 trillion worth of assets.

Fannie Mae CEO Michael J. Williams called the move a “welcome development,” adding that it will allow “more eligible homeowners to take advantage of the low interest rates.”

The president will discuss the plan during a stop later today in Las Vegas, an area of the country plagued by a devastatingly high foreclosure rate. Unable to get his comprehensive jobs bill through Congress, where Republican lawmakers have stymied attempts to pass the plan due to its proposed tax hikes, Obama will roll out a new slogan today of “We Can’t Wait” to justify his decision to act via executive order.

Nevada serves as a unique backdrop for the president. Not only does the state feature a 13.4 percent unemployment rate, the highest in the nation, but it also figures to be a key battleground state in 2012. Obama won Nevada by over a dozen points in 2008, but most polls show that his national approval rating has fallen below 46 percent. A poll released last week by Democracy Corps showed Obama tied with GOP contender Mitt Romney.

Following his visit to Las Vegas, the president will hold fundraisers in Los Angeles, San Francisco and Denver. Obama will also discuss his jobs plan in Denver before returning to Washington on Wednesday evening.