[Federal Register Volume 78, Number 187 (Thursday, September 26, 2013)]
[Rules and Regulations]
[Pages 59165-59218]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2013-22914]


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FEDERAL HOUSING FINANCE AGENCY

12 CFR Part 1238

[No. 2013-N-11]


Orders: Information Reporting With Respect to Stress Testing of 
Regulated Entities

AGENCY: Federal Housing Finance Agency.

ACTION: Orders.

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SUMMARY: Three Orders with identical text are being issued by the 
Federal Housing Finance Agency (FHFA) to supplement the final rule 
implementing section 165(i)(2) of the Dodd-Frank Wall Street Reform and 
Consumer Protection Act (Dodd-Frank Act). The rule and Order require 
the Federal National Mortgage Association (Fannie Mae), the Federal 
Home Loan Mortgage Corporation (Freddie Mac), and each of the twelve 
Federal Home Loan Banks (Banks) (any of the Banks singularly, Bank; 
Fannie Mae and Freddie Mac collectively, the Enterprises; the 
Enterprises and the Banks collectively, regulated entities; any of the 
regulated entities singularly, regulated entity) that has total 
consolidated assets of more than $10 billion to conduct annual stress 
tests to determine whether the companies have the capital necessary to 
absorb losses as a result of adverse economic conditions. One Order 
applies to the Federal Home Loan Banks; one Order applies to Fannie 
Mae; and one Order applies to Freddie Mac.

DATES: Each Order with accompanying Summary Instructions and Guidance 
is effective on October 28, 2013.

FOR FURTHER INFORMATION CONTACT: Naa Awaa Tagoe, Senior Associate 
Director, Office of Financial Analysis, Modeling and Simulations, (202) 
649-3140, [email protected]; Fred Graham, Deputy Director, 
Division of Federal Home Loan Bank Regulation, (202) 649-3500, 
[email protected]; or Mark D. Laponsky, Deputy General Counsel, 
Office of General Counsel, (202) 649-3054 (these are not toll-free 
numbers), [email protected]. The telephone number for the 
Telecommunications Device for the Hearing Impaired is (800) 877-8339.

SUPPLEMENTARY INFORMATION: 

I. Background

    FHFA is responsible for ensuring that the regulated entities 
operate in a safe and sound manner, including the maintenance of 
adequate capital and internal controls, that their operations and 
activities foster liquid, efficient, competitive, and resilient 
national housing finance markets, and that they carry out their public 
policy missions through authorized activities. See 12 U.S.C. 4513. 
These Orders are being issued under 12 U.S.C. 4514(a), which authorizes 
the Director of FHFA to require by Order that the regulated entities 
submit regular or special reports to FHFA and establishes remedies and 
procedures for failing to make reports required by Order. The Summary 
Instructions and Guidance accompanying each Order provides to the 
regulated entities general advice concerning the content and format of 
reports required by the Order and rule.
    These initial Orders communicate to the regulated entities their 
reporting requirements under the framework established by the final 
rule, and the accompanying Summary Instructions and Guidance provide 
general information on the reporting requirements. Separate Orders will 
be issued to advise the regulated entities of the scenarios to be used 
for the initial stress testing. FHFA anticipates supplementing the rule 
annually with Orders that provide test scenarios and other instructions 
and guidance (which may include adjustments to the instructions and 
advice, changes to the required elements and format, and

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transmission of the annual scenarios to the regulated entities).

II. Order, Summary Instructions and Guidance

    For the convenience of the affected parties, the text of the Orders 
is recited below in its entirety. You may access these Orders from 
FHFA's Web site at http://www.fhfa.gov/Default.aspx?Page=43. The Orders 
and Summary Instructions and Guidance will be available for public 
inspection and copying at the Federal Housing Finance Agency, Eighth 
Floor, 400 Seventh St. SW., Washington, DC 20024. To make an 
appointment, call (202) 649-3804.
    The text of the Orders and the Summary Instructions and Guidance is 
as follows:

Federal Housing Finance Agency

Order Nos. 2013-OR-B-1, 2013-OR-FNMA-1, and 2013-OR-FHLMC-1

Information Reporting with Respect to Stress Testing of Regulated 
Entities

    Whereas, section 165(i)(2) of the Dodd-Frank Wall Street Reform 
and Consumer Protection Act (``Dodd-Frank Act'') requires certain 
financial companies with total consolidated assets of more than $10 
billion, and which are regulated by a primary Federal financial 
regulatory agency, to conduct annual stress tests to determine 
whether the companies have the capital necessary to absorb losses as 
a result of adverse economic conditions;
    Whereas, the Federal Housing Finance Agency (``FHFA'') is the 
primary Federal financial regulator of the Federal National Mortgage 
Association (``Fannie Mae''), the Federal Home Loan Mortgage 
Corporation (``Freddie Mac''), and each of the 12 Federal Home Loan 
Banks (``Bank'') (individually, a ``regulated entity'' and, 
collectively, the ``regulated entities'');
    Whereas, each of the regulated entities currently has total 
consolidated assets of more than $10 billion;
    Whereas, FHFA must receive timely information from the regulated 
entities regarding the stress test results, and section 165(i)(2)(B) 
of the Dodd-Frank Act requires each regulated entity to submit a 
report to FHFA and the Board of Governors of the Federal Reserve 
System (Board), at such time, in such form, and containing such 
information as FHFA shall require;
    Whereas, FHFA's rule implementing section 165(i)(2) of the Dodd-
Frank Act requires that ``[e]ach regulated entity must file a report 
in the manner and form established by FHFA.'' 12 CFR Sec.  
1238.5(b); and
    Whereas, section 1314 of the Safety and Soundness Act, 12 U.S.C. 
Sec.  4514(a) authorizes the Director of FHFA to require regulated 
entities, by general or specific order, to submit such reports on 
their management, activities, and operation as the Director 
considers appropriate.
    Now therefore, it is hereby ordered as follows:
    Each regulated entity, pursuant to 12 CFR part 1238, shall 
report to FHFA and to the Board information with the content and in 
the form described in the Summary Instructions and Guidance dated 
September 9, 2013, and accompanying this Order, on the schedule 
prescribed in FHFA's final rule, 12 CFR part 1238, and in the 
Summary Instructions and Guidance.

    This Order is effective 30 days after publication in the Federal 
Register.

    Signed at Washington, DC, this 9th day of September, 2013.
Edward J. DeMarco,
Acting Director, Federal Housing Finance Agency.
    The Summary Instructions and Guidance are as follows:

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[FR Doc. 2013-22914 Filed 9-25-13; 8:45 am]
BILLING CODE 8070-01-P