3 days ago
Indiana Senator helps introduce bill to regulate executive pay in home loan agencies
WASHINGTON, D.C. (WTWO/WAWV)— Senator Jim Banks (R-Ind.) and Senator Catherine Cortez Masto (D-Nev.) Introduced a new act set to regulate the pay of executives of Federal Home Loan Banks.
The bill entitled the Curbing Unreasonable Renumeration at Banks Act will grant the Director of the Federal Housing Finance Authority the ability to set a reasonable compensation level for senior executives. The bill would be put in place to stop profit-driven behaviors in order to refocus on the banks' mission to support affordable housing and community lending.
'While the Federal Home Loan Bank system has continued to fail to meaningfully invest in affordable housing and community development, it pays its executives millions each year,' said Senator Masto. 'This bipartisan legislation gives the Federal Housing Finance Agency more oversight over FHLBanks executives' compensation to help make sure the system delivers for working families.'
Federal Home Loan Banks are government-sponsored enterprises that operate with public backing, which includes access to low-cost borrowing through government-implied guarantees that senators believe give them a responsibility to prioritize public interest over private gain. According to a 2023 report from the Federal Housing Finance Authority executives were given bonuses that were linked to financial performance that did not advance affordable housing goals.
You can find the full text of the bill here.
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