Ft Wayne Times

Senator Jim Banks recently addressed issues concerning the Federal Home Loan Banks (FHLBs) and the need for increased oversight in a series of tweets. On June 12, 2025, Senator Banks highlighted his involvement with colleagues from the Senate Banking Committee in reaching out to Federal Housing Finance Agency Director Bill Pulte. The correspondence aimed to advocate for more stringent oversight on compensation within the FHLBs. "Back in April, my colleagues and I on @BankingGOP wrote to Federal Housing Finance Agency Director Bill Pulte asking for more oversight on compensation for the FHLBs." He emphasized the necessity of enacting the CURB Act, a bipartisan effort intended to enhance regulatory supervision.

In another tweet posted on the same day, Senator Banks discussed the responsibilities of FHLBs as government-sponsored enterprises. He noted that these institutions operate with public backing, which should compel them to prioritize public interest over private gain. He referenced a report from 2023 by the Federal Housing Finance Agency (FHFA), which revealed that executive bonuses were linked to performance metrics. "As government-sponsored enterprises, FHLBs operate with public backing, which gives them an important responsibility to prioritize public interest over private gain."

Further elaborating on this issue, Senator Banks expressed support for Director Bill Pulte's commitment to eliminating mortgage fraud and waste at FHFA and its regulated entities. He affirmed his collaboration with both Director Pulte and President Biden in pursuing these objectives through legislative means like the CURB Act. ".@pulte is committed towards rooting out mortgage fraud and waste at @FHFA and its regulated entities." Senator Banks stressed that without such measures, achieving homeownership might remain elusive for many Americans.

The CURB Act is a legislative proposal aiming to reform compensation structures within government-backed financial institutions.