Add DeMarco To GSE Pay Hearing, Cummings Says

In addition to the CEOs of Fannie Mae and Freddie Mac, the House Oversight Committee's ranking member would like to see Federal Housing Finance Agency (FHFA) Acting Director Edward DeMarco called to a hearing next week on the topic of executive compensation at the government-sponsored enterprises (GSEs).

In a letter Tuesday to committee chairman Rep. Darrell Issa, R-Calif., Rep. Elijah Cummings, D-Md., requested that DeMarco be added to the hearing, which is scheduled for Nov. 16. To date, Issa has invited Fannie Mae CEO Michael J. Williams and Freddie Mac CEO Charles E. Haldman Jr.

"In order to properly examine these compensation packages, the committee should hear from the official who approved them, Mr. DeMarco," Cummings wrote, referencing the highly publicized $12.79 million in bonus pay earmarked for 10 GSE execs.

Cummings has also asked Issa to request that the FHFA produce copies of all compensation packages for the top executives at the FHFA and the GSEs.

Cummings is only the latest lawmaker to publicly decry the bonuses. Late last week, a bipartisan group of 60 senators led by Sens. Mark Begich, D-Alaska, and John Thune, R-S.D., wrote to DeMarco and Treasury Secretary Tim Geithner objecting to the bonuses.Â

‘The idea that Fannie Mae and Freddie Mac, which rely on taxpayer funding to stay afloat, must offer excessive bonuses to its executives to attract effective management strains credulity,’ the senators wrote, touching on the FHFA's argument that retaining key staff at the GSEs is a difficult objective.

The senators urge that substantial changes be made to the compensation packages, and they requested an update on the steps the FHFA has taken to address concerns regarding GSE executive compensation outlined in a March report from the FHFA's Office of the Inspector General.

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