Meanwhile, in the Senate support is gradually increasing for an amendment introduced Monday that would prevent the $12.9 million in bonuses to be awarded to top executives at Fannie Mae and Freddie Mac.
"Awarding millions of dollars to officials who share responsibility for billions in financial losses is an offensive misuse of hard-earned tax dollars," said Sen. Mike JohannsMike JohannsTo buy a Swiss company, ChemChina must pass through Washington Republican senator vows to block nominees over ObamaCare co-ops Revisiting insurance regulatory reform in a post-crisis world MORE (R-Neb.) on Tuesday.
Along with Johanns, the amendment was introduced by Sens. John McCainJohn McCainDrug importation won't save dollars or lives Dem rep Charlie Crist files for divorce Why the GOP cannot sweep its Milo scandal under the rug MORE (R-Ariz.), Jay RockefellerJay RockefellerObama to preserve torture report in presidential papers Lobbying world Overnight Tech: Senators place holds on FCC commissioner MORE (D-W.Va.), John BarrassoJohn BarrassoEPA head previously used private email for government business Big Pharma must address high drug prices A guide to the committees: Senate MORE (R-Wyo.), Mike EnziMike EnziA guide to the committees: Senate GOP senators unveil bill to give Congress control of consumer bureau budget Grizzlies, guns, and games of gotcha: How the left whiffed on Betsy DeVos MORE (R-Wyo.) and Lisa MurkowskiLisa MurkowskiGOP governors confront Medicaid divide GOP senator won't vote to defund Planned Parenthood A guide to the committees: Senate MORE (R-Alaska).
A recent bipartisan letter sent Nov. 4 and signed by 60 senators asks the FHFA to revise the compensation packages approved for 10 executives at the two companies.
The letter calls the bonuses “wildly imprudent” and urges the housing finance agency to make “changes to the executive compensation policy to more accurately reflect the mission of the agency and the fiscal reality facing the GSEs and the federal government.”
The letter, spearheaded by Sens. Mark BegichMark BegichThe future of the Arctic 2016’s battle for the Senate: A shifting map Trump campaign left out of Alaska voter guide MORE (D-Alaska) and John ThuneJohn ThuneYahoo reveals new details about security Conquering Trump returns to conservative summit Low-income consumer broadband credits mean competitiveness, choice and compassion MORE (R-S.D.), also went out to Treasury Secretary Timothy Geithner because of the role the department plays in overseeing taxpayer dollars used to keep the government-sponsored mortgage giants solvent.
Earlier on Tuesday the panel's ranking member, Rep. Elijah Cummings (D-Md.), sent a letter to Issa asking him to invite DeMarco to appear at the hearing.
Issa has invited Charles Haldeman Jr. and Michael Williams, the chief executives of Freddie Mac and Fannie Mae, respectively, to the hearing.
“In order to properly examine these compensation packages,” Cummings wrote, “the committee should hear from the official who approved them, Mr. DeMarco.”
Senate Banking, Housing and Urban Affairs Committee Chairman Tim JohnsonTim JohnsonCourt ruling could be game changer for Dems in Nevada Bank lobbyists counting down to Shelby’s exit Former GOP senator endorses Clinton after Orlando shooting MORE (D-S.D.) said last week that he will hold a hearing on the bonuses and wants DeMarco to testify.
The FHFA reportedly approved $12.79 million in bonus pay for 10 Fannie Mae and Freddie Mac executives last year.
A report from the FHFA’s inspector general found that the housing agency “lacks the controls to monitor and evaluate Fannie and Freddie’s executive compensation decisions and fails to make them transparent to the public.”
DeMarco has been on the hot seat for most of this year as lawmakers, especially House Democrats, apply pressure on the agency to overhaul programs to improve the sluggish housing sector.
In addition, Cummings also requested that Issa ask the FHFA to produce all copies of all compensation packages for the top executives at Fannie Mae and Freddie Mac by Nov. 14.
“Without testimony from the head of the agency responsible for approving executive compensation at Fannie Mae and Freddie Mac, and without copies of the compensation packages we are supposed to review at the hearing, the committee’s oversight efforts will be inadequate and incomplete,” Cummings wrote.