A new president with new possibilities for the housing market, is right around the bend, but can Barack Obama fix it? According to many marketing expects, proposals outlined by Obama during his campaign, are not sufficient. Within his plan is a 10% mortgage tax credit for all homeowners who do not itemize their taxes. There is also a planned change in bankruptcy law to provide judges with the authority to modify mortgages for struggling homeowners. On Obama´s website, there is quote saying he will "fight mortgage fraud and protect consumers against abusive lending practices,", as well as standardize loan forms so that they are more understandable for borrowers and more clear about all the costs entailed in receiving the loan.

Those in the housing market are skeptical as they feel his plan will have but a small effect on the 4 million homeowners who are already late on making their mortgage payments. Also, the plan may be relatively ineffective in boosting home prices, still 18% down from their previous high. It also does not include measures for amping consumer confidence in the market, convincing banks to be slightly less rigid in giving loans to those with almost perfect credit scores or those that would need to make smaller down payments. These skeptics or worried market participants want to know how will the $450 billion from the industry assistance fund be divided and what is going to be done with Fannie Mae and Freddie Mac?

Right now, in merely analyzing the points detailed by Obama, analysts view many problems. In regards to loan modification by judges, Republicans are staunchly against that and have consistently blocked it in the past. If it was passed, investors may stop buying mortgage-backed securities in fear that a judge could later change the loan terms. Investors to counteract the potential for modification could also make sure that borrowers pay higher interest rates from the start, just so the impact of a modification would not be as great. The vice president of government affairs with the Mortgage Bankers Association, Steve O´Connor, said that "It could significantly destabilize the marketplace,".

In regards to the second part of his plan, the mortgage credit, it could be positive in re bolstering the market for first-time home buyers. Obama´s website sad that the 10% credit would provide about $500 a year to 10 million homeowners, the majority of which earn less then $50,000 on a yearly basis. The president of the National Association of Mortgage Brokers, Marc Savitt, says that "It's great to promote homeownership, especially among first-time homebuyers if it's a true credit,". To date it is not known how the credit will actually work, nor how it will be paid for.

While many think that some of the other outlined proposals: increasing regulatory oversight, standardizing mortgage quotes for comparison, etc, are a little too late in the game, others tend to think on the positive side. Andrew Jakabovics, with the Center for American Progress feels that, "We would have been far better off acting earlier,...Just because we didn't act in time, that doesn't mean we shouldn't act now."