Various proposals to restructure the housing finance system call for the creation of a “Market Access Fund” that will replace Fannie Mae and Freddie Mac in funding affordable housing initiatives and research.
The GSE reform bill that Senators Bob Corker, R-Tenn., and Mark Warner, D-Va., are drafting provides funding for a
A joint GSE reform proposal advanced by Moody’s Analytics, Urban Institute and Milken Institute says a 6 basis point MBS fee would “ultimately generate at least $5 billion in annual revenue” and provide a “stable and consistent” funding source for the MAF.
The authors of the joint proposal note that it will be challenging for the private sector to support affordable housing initiatives that were previously funded by the GSEs.
Urban Institute senior fellow Ellen Seidman, Maryland University professor Phillip Swagel, Urban Institute president Sarah Wartell and Moody’s chief economist Mark Zandi released their joint reform proposal Wednesday morning.
A portion of these MBS fees would be used to capitalize a National Housing Trust Fund to increase and preserve the supply of affordable rental housing for extremely low-income families.
Separately, the Center for American Progress and National Council of La Raza expect the MAF will support the development and testing of innovative affordable products and services for approximately 1 million to 2 million households annually.
The MBS fee would also fund research to ensure all segments of the market are being served by the new housing finance system, according to CAP’s director of housing finance Julia Gordon.
