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63 July 2025 J O U R N A L July 2025 » themortgagepoint.com 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 Repub- lican 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 expect- ed to reach $6.9 billion in fiscal year 2024. This subsidy is net of the 10% of net income that the FHLBs must give to member institutions for affordable housing programs. Last year, the FHLBs made $6.3 billion. Sen. Jim Banks, R-Ind., joined Sen. Catherine Cortez Masto, D-Nev., in sponsoring a forthcoming bill that would allow the Federal Housing Finance Agen- cy to set executive compensation rules for leaders at the Federal Home Loan banks. (Courtesy of Bloomberg News) "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 bipar- tisan legislation gives the Federal Hous- ing Finance Agency more oversight over FHLBanks executives' compensation to help make sure the system delivers for working families." The CURB Act's key principles include giving the Federal Housing Fi- nance Agency instructions to supervise and determine more affordable com- pensation scales for senior executives. Over time, encouraging profit-driven conduct has trumped the Federal Home Loan Banks' goal of promoting afford- able housing and community lending. FHLBs have a special obligation to put their mission and the public interest first because they are government-spon- sored businesses with public support, such as low-cost borrowing through im- plicit 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 Hous- ing 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." BILL AIMS TO REVIVE VASP PROGRAM FOR VETS FACING FORECLOSURE U .S. Sen. Lisa Blunt Rochester and Mike Rounds are leading the introduction of the Veterans Housing Stability Act, a measure that will help keep veterans and service- members in their homes by reestab- lishing a vital program through the U.S. Department of Veterans Affairs (VA). May 1 marked the expiration of the Veterans Affairs Servicing Purchase (VASP) program, a mortgage assistance option that allows borrowers to obtain an affordable payment when delinquent on their mortgage. On April 23, 2025, the U.S. Department of Veterans Affairs (VA) issued Circular 26-25-2, announcing the termination of VASP as of April 30, 2025. Effective May 1, 2025, VA Secretary Douglas A. Collins announced the VA is no longer accepting VASP submissions, and the VA is rescinding the prescribed steps for considering veterans for hard- ship assistance, removing consistency, and transparency from the process. The Veterans Housing Stability Act: • Reestablishes a partial claim program at the Department of Veterans Affairs. • Allows the VA to assist veteran bor- rowers to get current on their loans and keep their homes. Arrearages would be acquired by the VA, placed into a separate lien, and could be paid off when a veteran sells their home or finishes paying off their loan. • Provides veterans with similar loss mitigation options to borrowers with FHA and USDA mortgages. During the COVID-19 pandemic, the VA helped U.S. veterans keep their homes by providing forbearances on most VA borrowers through the VA's COVID mort- gage forbearance program. The Partial Claim Program, established during the pandemic, helped veterans with financial difficulty stay in their homes. However, as of 2022, the VA ended its Partial Claim Program, leaving thousands of veterans who may have paused or missed their mortgage payments at risk. "Our nation has a sacred obligation to serve our veterans, just as they have served our nation. We absolutely cannot afford to have our veterans, and their families kicked out of their homes," said Sen. Blunt Rochester, a member of the Senate Banking, Housing, and Urban Affairs Committee. "To make matters worse, I was deeply alarmed when I learned the Trump administration decided to end VASP, a critical program that provided additional protections for veterans facing foreclosure. This legis- lation is an urgent fix that would ensure that our veterans and servicemembers remain safely in their homes." Sen. Richard Blumenthal, a long- time champion for veterans and Rank- ing Member of the Senate Veterans' Affairs Committee, joined the legisla- tion as a cosponsor. "Veterans facing painful financial hardship deserve a viable solution to get their mortgages current and keep their homes," said Sen. Blumenthal. "Right now, potentially tens of thousands of veterans are at risk of losing their homes as a direct result of Secretary Collins' reckless and reprehensible decision to end the VASP Program. Our legislation will create a replacement program to