When it comes to homeownership, consumers desire financing options that are flexible and create financial stability.

Watt, a former North Carolina congressman, also cited the need for Fannie and Freddie to focus on needs of the present, including their eventual emergence from government conservatorship, and elected not to address housing finance reform legislation.

FHFA's first strategy, Watt said, is to maintain foreclosure prevention activities and credit availability for new and refinanced mortgages to “foster liquid, efficient, competitive and resilient national housing finance markets.”

The second strategy would involve efforts to reduce taxpayer risk by scaling back mortgage portfolios for both Fannie and Freddie, and increase the role of private capital in the mortgage market, Watt said. The 2014 plan called for $30 billion in risk transfers, an amount that would triple to $90 billion under Watt's new strategy.

The third strategy seeks to build a new single-family securitization infrastructure for use by Fannie and Freddie and other participants in the secondary markets. This would involve a common securitization platform and moving Fannie and Freddie to a single common security as a means to improve liquidity and leverage current systems and resources.

Watt said, “The FHFA will proceed with these steps in a transparent way that incorporates the feedback of the public and stakeholder groups whenever possible.”

Watt's speech came at what could be a critical time. Reform measures for the two enterprises seem to have stalled in Congress, while naysayers have said they worry looser standards could lead the $14.4 trillion mortgage market into another housing bubble-and-burst cycle.