HUD chief: Obama housing plan will expand ‘strong recovery’

Obama is expected to outline his proposals to reform the housing system, including winding down government-backed mortgage giants Fannie Mae and Freddie Mac, in Phoenix, against the backdrop of that city’s rebounding housing market. Fannie and Freddie received a $187 billion taxpayer-funded bailout in 2008.

The trip marks the latest stop on his tour aimed at refocusing the agenda on the economy and the middle class.

“What the president is saying today is that we've gotta build a system overall that makes sure we never have a crisis like we had again,” Donovan said of the housing market collapse. “We have to build a safer system.”

Donovan pointed to the stronger state of the housing market, which has rebounded in recent months due to low interest rates.

He added that the president is encouraged by a show of bipartisan support on Capitol Hill and expects lawmakers to act on many of the measures.

“The president's encouraged,” Donovan said. “There's bipartisan progress on the Hill on this and he wants to work with members to get this done as quickly as possible.”

Obama will also link his housing reform proposals to immigration reform, Donovan said. According to the White House, immigrants accounted for almost 40 percent of new homeowners from 2000 to 2010.