Sponsors (2)
The bill centralizes FHFA authority to standardize executive pay and reduce legal uncertainty across the Federal Home Loan Bank system, but it risks higher compensation costs that could be passed to members or taxpayers and reduces local bank autonomy over pay decisions.
Federal Home Loan Banks, their executive officers, and their members/customers: FHFA can set reasonable, comparable pay for Federal Home Loan Bank executive officers, producing more consistent compensation practices and stronger governance across the Bank System.
Banks and regulators: the bill removes transitional language and explicitly resolves conflicts with 12 U.S.C. 4518(d), clarifying FHFA's regulatory authority and reducing legal uncertainty for banks and supervisors.
Bank members/customers and taxpayers: if the FHFA Director's regulations permit higher pay, executive officers could receive larger compensation, increasing costs for the Banks that may be passed on to members, customers, or ultimately taxpayers.
Federal Home Loan Banks and their members: centralizing broad pay‑setting power in the FHFA Director concentrates control over executive compensation and reduces local bank autonomy in pay decisions.
Based on analysis of 2 sections of legislative text.
Authorizes the FHFA Director to set reasonable, comparable compensation for Federal Home Loan Bank executive officers by regulation, overriding a conflicting statute.
Introduced June 9, 2025 by James E. Banks · Last progress June 9, 2025
Amends the Federal Home Loan Bank Act to give the Federal Housing Finance Agency (FHFA) Director explicit authority to set "reasonable and comparable" compensation for any executive officer of a Federal Home Loan Bank through FHFA regulations, and to do so despite a conflicting statutory provision. The change centralizes pay-setting authority at FHFA, removes a transitional paragraph from the existing statute, and clarifies that FHFA rules can control executive pay at the Federal Home Loan Banks.