Obama Set To Announce Housing Plan Today

President Barack Obama is expected to release the details of his comprehensive plan to address the country's housing crisis later today. The plan will focus on lowering mortgage payments and reducing mortgage interest rates in an effort to stop the downward spiral in housing prices caused by the massive foreclosure problem. The plan is also expected to give bankruptcy judges greater power to modify mortgages, according to reports.

Confirming earlier reports, the Wall Street Journal said the heart of the plan is an effort to make loans more affordable by providing a government subsidy to help mortgage companies modify certain troubled loans.

A program that will allow homeowners who owe more than their homes are worth to refinance their mortgages is also expected to be included in the plan.

In a move designed to push mortgage companies to reduce principal balances, the administration may make it easier for judges to modify mortgages during bankruptcy proceedings. Mortgage companies have fought such a move.

Traders will look to focus on financials stocks into and following the news: Bank of America (NYSE: BAC), Wells Fargo (NYSE: WFC), JP Morgan (NYSE: JPM), Citigroup (NYSE: C), Financial Select Sector SPDR (NYSE: XLF).

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