WASHINGTON — Rep. Maxine Waters' plan to let banks control a sole entity to issue government-backed mortgage securities is dead-on-arrival, but her proposal still significantly alters the housing reform debate.

A different housing finance bill in the Senate — which envisions private-market competition for securitizing loans — has greater bipartisan support and is scheduled for a Banking Committee vote next month. But Waters' bill, which would create a single cooperative — in which banks have an equal vote, regardless of their size — to issue securities, may still influence liberal Democrats and other lawmakers skeptical of the Senate legislation but who are crucial to getting a final bill passed.

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