WASHINGTON, DC – U.S. Senator Bob Casey (D-PA) cosponsored bipartisan legislation to put a stop to excessive bonuses for executives at Freddie Mac and Fannie Mae, the taxpayer-owned mortgage companies.
The Stop the Outrageous Pay (STOP) at Fannie Mae and Freddie Mac Act prevents the distribution of undisbursed bonus money and moves all Fannie Mae and Freddie Mac employees onto a structured pay scale similar to that of other federal financial regulators. Ten Fannie and Freddie executives received over $13 million in bonus pay last year.
“Fannie and Freddie executives should not reap millions of dollars in bonuses from taxpayers, especially at a time when some of their financial practices appear to be contrary to the best interest of those they are supposed to serve,” said Senator Casey. “When taxpayers are footing the bill, Fannie and Freddie need to be accountable and play by the same rules as federal agencies.”
Senator Casey expressed outrage in a letter to President Obama earlier this week after reports surfaced that Freddie Mac, whose mission is to encourage Americans to own homes and execute policies to help homeowners stay in their homes, has bet against homeowners’ ability to repay their mortgages while simultaneously making it more difficult to refinance.
The STOP Act was introduced by Senators Mark Begich (D-AK) and John Thune (R-SD).