Waters, a senior member of the House Financial Services Committee, would face a trial in the fall unless she negotiates a settlement.
If the case goes to trial, Democrats would have the political headache of two ethics trials - one for Waters and another for Rep. Charles Rangel of New York.
The specific charges against Waters were not made public in the announcement Monday from the House ethics committee.
Waters has been under investigation for a possible conflict of interest involving her assistance to a bank that was seeking federal aid. Her husband owned stock in the bank and had served on its board.