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DS News Webcast: Monday 7/26/2015

The House Financial Services Committee has announced that proposed legislation to cap the salaries of CEOs at Fannie Mae and Freddie Mac has advanced to the markup phase, which will take place in the Committee on Tuesday, July 28. The Equity in Government Compensation Act of 2015 was introduced in May by U.S. Representative Ed Royce, a Republican from California, shortly after Federal Housing Finance Agency director Mel Watt directed the GSEs to submit a proposed executive compensation for the CEO position that could be as high as $7.26 million a year.

 

Watt said in a statement earlier this month that the purpose of the pay raises was to "promote CEO retention, allow reliable succession planning, and ensure the continuity, efficiency and stability" at the GSEs. Royce's bill would suspend the compensation packages for Fannie Mae and Freddie Mac executives and would limit the salaries to the highest level paid at the FHFA, which the Congressional Budget Office estimated in 2011 to be $255,000 per year.

 

On Friday, a Texas bank received a victory when a federal appeals court revived a lawsuit that challenged the constitutionality of the Consumer Financial Protection Bureau. The U.S. Court of Appeals for the District of Columbia Circuit ruled that the bank had legal standing to proceed with a lawsuit arguing the structure of the CFPB is unconstitutional. The State National Bank of Big Spring in Texas is arguing against the formation and operation of the CFPB.

About Author: Jordan Funderburk

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