Skip to main content

Bill to Limit Compensation for Fannie Mae Freddie Mac Executives Team Thayer Real Estate News

www.teamthayer.com Eugene OregonThe House Financial Services Committee has announced that proposed legislation to cap the salaries of CEOs at Fannie Mae and Freddie Machas advanced to the markup phase, which will take place in the Committee on Tuesday, July 28.
H.R. 2243, also known as the Equity in Government Compensation Act of 2015, was introduced by U.S. Rep. Ed Royce (R-California) in May shortly after Federal Housing Finance Agency (FHFA) 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, the 25th percentile of the market.
Early in July, Fannie Mae and Freddie Mac announced that their respective CEOs, Timothy Mayopoulos and Donald Layton, would receive a raise from their current annual salaries of $600,000 (the cap set by Watt's predecessor, Edward DeMarco) up to $4 million. The announcement of the substantial raise for the GSE's top executives drew the ire of many lawmakers, including Royce, who said it is "unconscionable" that the GSEs would elevate the pay of their CEOs to that level while taxpayers are still on the hook. The GSEs have been under the FHFA's conservatorship since September 2008, when they received a $187.5 billion taxpayer-funded bailout.
Similar legislation was introduced by former Rep. Spencer Bachus (R-Alabama) in January 2012 and passed the House Financial Services Committee on a bipartisan vote of 52-4. One of the four who voted against the legislation was Mel Watt, then a member of the Committee.
"Congress needs to put a stop to the planned multi-million dollar paydays at Fannie Mae and Freddie Mac," Royce said upon the announcement that his bill was scheduled for markup. "Holding compensation packages at taxpayer-backed organizations to responsible limits is in the interest of the public trust. I thank Chairman Hensarling for advancing this legislation and look forward to building the bipartisan backing it previously garnered."
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 Fannie Mae and Freddie Mac.
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. It would also place non-executive GSE employees on the General Schedule (GS) pay scale, where the most they could earn annually would be $132,122.
Other government agencies have weighed in on the pay rate for the top executives at the GSEs. The Department of Treasury released a statement earlier this month saying, "Treasury does not support FHFA’s new approach to CEO compensation at Fannie Mae and Freddie Mac and urged the agency to reject any increase. Treasury has consistently recommended that existing limits on compensation continue." White House press secretary Josh Earnest stated, "I think it is entirely legitimate for the executives at those institutions to be subject to compensation limits."
  Team Thayer  www.teamthayer.com

Justin Lee Thayer is Lane counties expert in market analysis for real estate investors. Call Justin @ 541-543-7287
Sharing is caring use the social b buttons below to share this post

Popular posts from this blog

The top 5 mistakes people make selling their homes. Team Thayer Official Oregon Real Estate News.

5 home selling mistakes with Team Thayer 1. Trying to sell your home yourself In this DIY era, the urge to try to sell your home yourself to save money can beckon like the smell of oven-fresh cookies at an open house. Resist.  Working with a licensed agent  helps ensure you’re not leaving money on the table as a result of an off-target listing price or a mistake in the many steps that lead to a final sale. Sell your sofa yourself online. List your home with a professional. 2. Picking the wrong Realtor Not all agents are equal. Just because your college buddy dabbles in the industry doesn't mean he’s the best guy to sell your home. You want experience. You want to  work with an agent  who has a depth of knowledge. Invite your buddy to the house-warming party.  Find an agent  who can truly perform. Do you research.  Top Home Sales Mistakes 3. Pricing your home too high Sometimes it’s good to aim high. But when you’re setting a price for your home, it’s better to b

UFC 227 play-by-play and live results #UFC #MMA #UFC227

LOS ANGELES – MMAjunkie is on scene and reporting live from today’s UFC 227 event, and you can join us for live play-by-play and official results beginning at 6:30 p.m. ET (3:30 p.m. PT). The event takes place at Staples Center in Los Angeles. The main card airs on pay-per-view following preliminary-card bouts on FX and UFC Fight Pass. In the main event, bantamweight champion T.J. Dillashaw (15-3 MMA, 11-3 UFC) rematches former champ and ex-teammate Cody Garbrandt (11-1 MMA, 6-1 UFC) for the title. In the co-feature, flyweight champion Demetrious Johnson (27-2-1 MMA, 15-1-1 UFC) has a rematch with Olympic gold medalist and former title challenger Henry Cejudo (12-2 MMA, 6-2 UFC). Follow along with our round-by-round updates and official results beginning at approximately 6:30 p.m. ET for the UFC Fight Pass prelims, 8 p.m. ET for the prelims on FX, and 10 p.m. ET for the main card on pay-per-view. To discuss the show, be sure to check out our  UFC 227 discussion thread . You can als