Washington, D.C. – U.S. Senators Catherine Cortez Masto (D-Nev.) and Jim Banks (R-Ind.) introduced the Curbing Unreasonable Remuneration at Banks (CURB) Act. This bipartisan legislation grants the Director of the Federal Housing Finance Agency the authority to set reasonable compensation levels for senior executives.
“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 Cortez 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 exist to help Americans buy homes, not to pad the pockets of executives,” said Senator Banks.“This bill keeps FHLBs on mission and empowers President Trump and FHFA Director Pulte to eliminate excessive pay and waste of government resources.”
Over the years, the Federal Home Loan Banks’ mission of supporting affordable housing and community lending has taken a back seat to incentivizing profit-driven behavior. As government-sponsored enterprises, FHLBs operate with public backing, including access to low-cost borrowing through government-implied guarantees and exemption from income tax, which gives them a unique responsibility to prioritize their mission and the public interest. However, a 2023 report from the FHFA indicated that executives earned bonuses tied to financial performance metrics that did not advance affordable housing goals. The CURB Act direct the Federal Housing Finance Agency to oversee and establish more reasonable salaries and bonuses.
Full bill text can be found here.
Throughout her time representing Nevada, Senator Cortez Masto has made reforming the Federal Home Loan Banks a cornerstone of her work. In April, Cortez Masto introduced the Federal Home Loan Banks’ Mission Implementation Act, which would ensure the FHLBanks are re-focused on their mission to support housing finance and community development. In Congress, Senator Cortez Masto has also highlighted the fact that Nevada has been treated unfairly by the system, and she has sought additional investment in Nevada by the FHLBank of San Francisco resulting in the first-in-the nation targeted Affordable Housing Program for the state.
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