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Thursday, May 27th

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State Of The Union

Washington Reports

If President Obama's state of the union address was any guidance then don't look for much in that way of new or dramatic initiatives from his administration. Most of those efforts apparently happened to set up for last year.

The president barely pointed out housing schemes and services in his 71 minute speech that though he did acknowledge that home values have declined and noted that cutting of taxes for first time home buyers. The tax credit program, however, is set only for expiration mid year. Some real estate group owners privately are suggesting the credit program might need to be extended again to prevent a sharp drop off in sales.

But there's currently little support for that and the president gave no hint that he would even consider such a move. ‘Obama’ made a pledge to step up efforts to assist and guide through financially distressed homeowners through refinancing that can change their needs into more affordable mortgages.

The well known ‘House Financial Service committee’ chairman ‘Barney Frank ‘sent shockwaves through Washington's housing and mortgage groups last week when he announced that his committee expects to introduce legislation that would effectively kill the two home mortgage investors in their current form. Frank offered no prints on what might replace Fannie and Freddie - which together account for well over half of all mortgage financings in the U.S. and play key roles in the Obama administration's which  currently refinancing and loan modification efforts.