Housing finance reform legislation introduced

This story appeared in Bank Digest.

Rep. Maxine Waters, Ranking Member of the Financial Services Committee, has released a legislative proposal to reform the housing finance market. Known as the Housing Opportunities Move the Economy Forward Act of 2014, the measure would end Fannie Mae and Freddie Mac, and create a new, cooperative-owned securities issuer. The bill would end the incentives created by the ownership structure of the government-sponsored enterprises while preserving the role of small financial institutions, providing a more flexible approach to placing credit risk in the markets, and ensuring access to affordable rental housing for low-income families.