House panel votes to cap CEO pay at Fannie, Freddie

The House Financial Services Committee voted Wednesday to cap the salaries of the top officials at Fannie Mae and Freddie Mac at their current level of $600,000 annually.

The vote was near-unanimous with 57 lawmakers backing the cap. Stephen Lynch, D-Mass., cast the lone vote in opposition.

The legislation, dubbed the Equity In Government Compensation Act, was prompted by concerns that the Federal Housing Finance Agency, which oversees the mortgage buyers, would approve salaries as high as $7.2 million for the CEOs.

"Multi-million dollar paydays for the CEOs of Fannie and Freddie represent a failed grasp of reality on the part of both the GSEs and their regulator," said Rep. Ed Royce, R-Calif., the chief sponsor of the legislation.