President Obama signed into a law the Equity in Government Compensation Act of 2015 last week, which caps the salaries of Fannie Mae CEO Timothy Mayopoulos and Freddie Mac CEO Donald Layton. The move is a rebuke of Federal Housing Finance Agency Director Mel Watt’s attempt to award the CEOs $3 million raises.

The act, which is based on legislation by Rep. Ed Royce, R-CA, caps the pay of the Fannie and Freddie’s CEO' at its current level: $600,000. The House of Representatives unanimously passed the Senate version of the GSE CEO pay limit bill two weeks prior.

"Reaching a similar bipartisan consensus on winding down Fannie and Freddie is critical, as the federal government's dominance of the housing market is unsustainable," Royce said of the bill being signed into law. "We should encourage more private capital in the system to ease the way for future comprehensive housing finance reform."

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