Warren Seeks Salary Cap on GSE Execs

Apr 15, 2019

A new bill introduced in the U.S. Senate by Sen. Catherine Cortez Masto (D-NV) and in the House by Rep. Nydia M. Velázquez (D-NY) seeks to reinstate Dodd-Frank Act reporting requirements

Sen. Elizabeth Warren (D-MA) has teamed with Republican colleague Thom Tillis of North Carolina to introduce the Respect the Caps Act, a bill designed to create a salary cap for the executives running the government-sponsored enterprises (GSEs).

The senators stated their bill came in response to a recent report by the Federal Housing Finance Agency’s (FHFA) Inspector General, which concluded the regulatory agency enabled the compensation levels for executives at Fannie Mae and Freddie Mac to rise above Congressionally-mandated limits. The senators added that the FHFA worked around these limits by separating the roles of chief executive and president role at Fannie Mae and Freddie Mac, thus transferring CEO duties to the president and raising the president’s salary.

The Respect the Caps Act prevents the FHFA from transferring the duties of GSE CEO to another position and would mandate the removal of the FHFA Director if compensation is approved for an amount higher the cap of $600,000 a year.

“Following the financial crisis, Congress passed my bipartisan bill to cap pay raises for executives at Fannie Mae and Freddie Mac,” said Warren. “Instead of enforcing the law, the FHFA has allowed executive compensation at Fannie to increase by $3.6 million and at Freddie, by $3.25 million. My new bill with Senator Tillis is designed to close the loophole used to more than triple CEO salaries and keep Fannie and Freddie in check.”

About the author

Phil Hall

Link copied

Published

Apr 15, 2019

Analysis and Data

Jobs Report Comes In Weak After Mortgage Rates Surge

Employers added just 29,000 jobs in September, sending Treasury yields lower and offering a potential counterweight to the recent rise in mortgage rates

The September jobs report gave the mortgage market something it hasn't had much of lately: downward pressure on Treasury yields.U.S. employers added just 29,000 jobs in September, while the unemployment rate edged up to 4.2%, according to the Bureau of Labor Statistics. The ...

Wholesale

The Loan Store Rebrands As Averra Financial

The wholesale lender is adopting a new identity three years after acquiring Homepoint’s wholesale business and rising to No. 4 in industry rankings

The Loan Store has a new name after a three-year expansion that transformed the once-small wholesale lender into one of the largest players in the broker channel.The Tucson, Arizona-based lender has rebranded as Averra Financial Inc., effective immediately, the company annou...

Nov

Houston, TX

More from

Analysis and Data

Jobs Report Comes In Weak After Mortgage Rates Surge

Employers added just 29,000 jobs in September, sending Treasury yields lower and offering a potential counterweight to the recent rise in mortgage rates

Analysis and Data

Oct 02, 2026

Price Cuts Hit Four-Year High As Mortgage Rates Top 7%

More than one in five listings took a price cut in September, but pending sales still posted their sharpest annual decline since March 2025

Analysis and Data

Oct 01, 2026

Serious Mortgage Delinquencies Rise 19% After Five Months Of Improvement

ICE data shows 574,000 mortgages were at least 90 days past due in August, while early-stage delinquencies remained below year-ago levels

Analysis and Data

Sep 29, 2026

Smaller Down Payments Give Buyers More Room, But Rates Limit The Savings

The typical down payment fell 9% from a year ago, while shifting market conditions are giving originators different affordability conversations across the country

Analysis and Data

Sep 25, 2026

Mortgage Rates Break 7% Just As Builders Find A Way To Move Buyers

New-home sales rose 6.4% in August as builders cut prices, offered incentives, and sold more lower-priced homes. Now mortgage rates are moving against buyers again

Analysis and Data

Sep 25, 2026

Borrowers Want Digital Closings, But Some Originators Remain Hesitant

ServiceLink finds 45% of surveyed LOs cite borrower reluctance as a barrier, even though most recent buyers say digital options would influence their choice of mortgage provider

Tech

Sep 23, 2026

Popular