Warner on Executive Pay at Freddie Mac & Fannie Mae
GSEs open door to increasing CEO pay
WASHINGTON – May 5, 2015 – (RealEstateRama) — U.S. Sen. Mark R. Warner (D-VA), a member of the Senate Banking Committee and Ranking Member of the Banking Subcommittee overseeing the secondary mortgage market, released a statement after mortgage-finance companies Freddie Mac and Fannie Mae disclosed today that their regulator, the Federal Housing Finance Agency, had authorized them to review the pay of their top executives.
“Our current mortgage finance system – with only private gains and public losses – is unsustainable, and last week’s stress tests results confirmed that Fannie and Freddie remain in an unsustainable position. The GSEs have been in conservatorship since 2008, after requiring a $188 billion taxpayer bailout,” said Sen. Warner. “Yet now we learn that their regulator may allow a steep increase in executive compensation. It is long past time for Congress to fix this flawed business model and enact responsible reforms to our housing finance system.”
Sen. Warner is a leader in efforts to reform the housing finance system. In 2014, with Sen. Bob Corker (R-TN), Sen. Warner sponsored comprehensive housing finance reform that passed the Banking Committee, 13-9.