The system will also have a new regulator called the Federal Mortgage Insurance Corporation that will oversee MBS insurers and the securitization platform. "Decisions made about the future of the mortgage finance system will affect U.S. homeowners and the broader economy for decades," the authors wrote, urging policymakers to embrace the core tenets of the proposal. "Inaction also represents a decision, since leaving Fannie Mae and Freddie Mac in conservatorship means the effective nationalization of the U.S. housing finance system. Such a course would penalize American families looking to buy homes and leave taxpayers exposed to excessive housing risk." -- Written by Shanthi Bharatwaj in New York. Contact by Email. Follow @shavenk Disclosure: TheStreet's editorial policy prohibits staff editors and reporters from holding positions in any individual stocks.