The Curbing Unreasonable Remuneration at Banks (CURB) Act was presented by U.S. Senators Jim Banks (R-Ind.) and Catherine Cortez Masto (D-Nev.). The Director of the Federal Housing Finance Agency (FHFA) is empowered by this bipartisan act to determine appropriate senior executive salary levels.
Sen. Banks and every other Republican on the Senate Banking Committee wrote to Bill Pulte, the director of the Federal Housing Finance Agency, in April 2025, requesting greater control of the FHLBs’ salaries.
According to the Congressional Budget Office, the net government subsidy to the FHLB system is expected to reach $6.9 billion in fiscal year 2024. This subsidy is net of the 10 percent of net income that the FHLBs must give to member institutions for affordable housing programs. Last year, the FHLBs made $6.3 billion.
“While the Federal Home Loan Bank system has continued to fail to meaningfully invest in affordable housing and community development, it pays its executives millions each year,” said Senator Cortez Masto. “This bipartisan legislation gives the Federal Housing Finance Agency more oversight over FHLBanks executives’ compensation to help make sure the system delivers for working families.”
The CURB Act’s key principles includes giving the Federal Housing Finance Agency instructions to supervise and determine more affordable compensation scales for senior executives.
Over time, encouraging profit-driven conduct has trumped the Federal Home Loan Banks’ goal of promoting affordable housing and community lending.
FHLBs have a special obligation to put their mission and the public interest first because they are government-sponsored businesses with public support, such as low-cost borrowing through implicit guarantees from the government and income tax exemption.
However, according to a 2023 FHFA study, CEOs received bonuses based on financial performance indicators that did not further the objectives of affordable housing. The Federal Housing Finance Agency is mandated by the CURB Act to supervise and set more fair bonuses and salaries.
“Federal Home Loan Banks exist to help Americans buy homes, not to pad the pockets of executives,” Senator Banks said. “This bill keeps FHLBs on mission and empowers President Trump and FHFA Director Pulte to eliminate excessive pay and waste of government resources.”
To read the full bill, click here.
