WASHINGTON — The House approved a bill Monday night capping pay for Fannie Mae and Freddie Mac's top executives, sending the measure to President Obama's desk to be signed into law.

Lawmakers passed the Senate-approved legislation by Sens. Elizabeth Warren, D-Mass., and David Vitter, R-La., by voice vote. The move comes in response to a decision by Mel Watt, director of the Federal Housing Finance Agency, to raise the compensation packages for the chief executives at the government-sponsored enterprises to nearly $4 million each, up from $600,000.

"While this is a victory for taxpayers, the real battle of winding down the GSEs and ending the government's domination of the housing market remains," said Rep. Ed Royce, R-Calif., in a statement Monday night.

Royce sponsored a similar bill in the House before the Senate took action. That legislation passed the Financial Services Committee 57-1 in July.

The proposal is the first piece of legislation related to housing finance reform to become law since the GSEs were put into conservatorship in 2008. The Treasury Department previously expressed concern with the pay raises and the White House is expected to sign the measure.

Subscribe Now

Authoritative analysis and perspective for every segment of the mortgage industry

30-Day Free Trial

Authoritative analysis and perspective for every segment of the mortgage industry