As expected, President Barack Obama said this week that hewould wind down Fannie Mae and Freddie Mac and replace them with aprivatized system in a speech that also voiced support for theCorker-Warner Senate bill that would do the same.

Speaking Tuesday at a construction company in Phoenix, Obamalaid out his four core principles for housing finance systemreform, with his first objective being to limit the government'srole and allow private capital to take a bigger role in themarket.

He made a passing reference to credit unions when he said that“private lending should be the backbone of the housing market,including community-based lenders who view their borrowers not as anumber, but as a neighbor.”

Industry trade associations picked upon the remark.

“We appreciate the president's leadership on seeking solutionsto reform our housing finance system and his recognition of theimportance of community-based lenders such as credit unions,” saidNAFCU President/CEO Dan Berger.

“In any future housing finance system, it is critical thatcredit unions continue to have unfettered access to the secondarymortgage market and attain fair pricing based on the high qualityof their loans,” Berger said.

CUNA President/CEO Bill Cheney also made note of the nod, sayinghis organization was gratified to see Obama recommended that creditunions and other small institutions have the same opportunity tocompete in any future secondary mortgage market. Cheney also saidthat much of Obama's plan is consistent with CUNA's principals forhousing finance reform.

The era of bailouts for GSEs is over, Obama said while makinghis second point. And in his third point, which would placatecongressional Democrats who have voiced concerns about the fate ofthe 30-year, fixed-rate mortgage in GSE reform, Obama pledged topreserve access to the product.

“That's something families should be able to rely on when theymake the most important purchase of their lives,” he said.

Finally, the president said he would strengthen the FederalHousing Administration to help Americans achieve homeownership, andadded that the government should continue efforts to supportaffordable rental housing and fight homelessness, another concerncongressional Democrats voiced during reform hearings.

The primary spokeswoman of those Democratic concerns has beenRep. Maxine Waters (D-Calif.), House Financial Services CommitteeRanking Member. In a statement, she praised Obama's plan,specifically lauding his mention of the 30-year fixed-rate mortgageand protection of renters as well as homeowners.

Her gavel-wielding committee nemesis, Financial ServicesChairman Jeb Hensarling (R-Texas), said in a statement he alsosupports Obama's initiative, another sign that GSE reform hasbipartisan support.

“Our plan, the Protecting American Taxpayers and Homeowners Act,puts private capital at the center of the housing finance system;ends the bailout of Fannie Mae and Freddie Mac; and sustains the30-year fixed rate mortgage–all goals the president today says hesupports,” Hensarling said. “Last month, the committee passedthis legislation and I look forward to continued debate thisfall.”

Obama also said he's glad the Senate finally confirmed Richard Cordray to head the Consumer Financial ProtectionBureau, and scolded the upper chamber for delaying confirmation ofRep. Mel Watt (D-N.C.) to fill the director's position at theFHFA.