The HOME Forward Act would wind down Fannie Mae and Freddie Mac over a five year period and replace them with a newly created lender-owned cooperative, the Mortgage Securities Cooperative (MSC). The MSC would be the only entity that could issue government guaranteed securities and would be lender-capitalized, based on mortgage volume. The bill would also create a new regulator, the National Mortgage Finance Administration (NMFA).
Like the Johnson-Crapo discussion draft bill released on March 16 the Waters bill would require a 10 basis point fee assessment on users of the new system, estimated to generate approximately $5 billion a year. The Waters bill would direct 75% of the amounts collected through this fee to the National Housing Trust Fund (NHTF), 15% to the Capital Magnet Fund, and 10% to a new Market Access Fund.
In a press release about the HOME Forward Act, NLIHC President and CEO Sheila Crowley said,
“Representative Waters has been a stalwart champion of the National Housing Trust Fund for many years. She knows how crucial stable, secure housing is for children to succeed in school, for adults to succeed in the workplace, and for seniors and people with disabilities to live with dignity in their communities. We are very grateful that she has provided for decent homes for them in her legislation.”