[Federal Register Volume 78, Number 248 (Thursday, December 26, 2013)]
[Rules and Regulations]
[Pages 78165-78255]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2013-30356]


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FEDERAL HOUSING FINANCE AGENCY

12 CFR Part 1238

[No. 2013-N-17]


Orders: Reporting by Regulated Entities of Stress Testing Results 
as of September 30, 2013; Revision and Amendments to Summary 
Instructions and Guidance

AGENCY: Federal Housing Finance Agency.

ACTION: Orders.

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SUMMARY: In this document, the Federal Housing Finance Agency (FHFA) is 
issuing Orders to further supplement the final rule implementing 
section 165(i)(2) of the Dodd-Frank Wall Street Reform and Consumer 
Protection Act (Dodd-Frank Act), and appeared in the

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Federal Register of September 26, 2013, at 78 FR 59219. FHFA also is 
amending the Summary Instructions and Guidance, which accompanied the 
Orders.

DATES: Each Order is effective November 26, 2013.

FOR FURTHER INFORMATION CONTACT: Naa Awaa Tagoe, Senior Associate 
Director, Office of Financial Analysis, Modeling and Simulations, (202) 
649-3140, [email protected]; Stefan Szilagyi, Examination Manager, 
FHLBank Modeling, FHLBank Risk Modeling Branch, (202) 649-3515, 
[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 Orders 
prescribe for the regulated entities the scenarios to be used for 
stress testing. The Summary Instructions and Guidance accompanying each 
Order provides to the regulated entities advice concerning the content 
and format of reports required by the Order and rule.
    These Orders communicate to the regulated entities their reporting 
requirements under the framework established by the final rule, and the 
revised and amended Summary Instructions and Guidance that accompany 
each Order. These Orders also advise the regulated entities of the 
scenarios to be used for the stress testing.

II. Order, Summary Instructions and Guidance

    For the convenience of the affected parties, the text of the Orders 
follows 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, 
as amended, is as follows:

Federal Housing Finance Agency

Order Nos. 2013-OR-B-2, 2013-OR-FNMA-2, and 2013-OR-FHLMC-2

Reporting by Regulated Entities of Stress Testing Results as of 
September 30, 2013
    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, FHFA's rule implementing section 165(i)(2) of the Dodd-
Frank Act is codified as 12 CFR part 1238 and requires that ``[e]ach 
regulated entity must file a report in the manner and form established 
by FHFA.'' 12 CFR 1238.5(b);
    Whereas, The Board of Governors of the Federal Reserve System 
issued stress testing scenarios on November 1, 2013, corrected on 
November 7, 2013, and supplemented on November 14, 2013; and
    Whereas, section 1314 of the Safety and Soundness Act, 12 U.S.C. 
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 shall report to FHFA and to the Board of 
Governors of the Federal Reserve System the results of stress testing 
as required by 12 CFR part 1238, in the form and with the content 
described therein and in the Summary Instructions and Guidance 
accompanying this Order and dated November 26, 2013, which replaces, 
amends, and supersedes the Summary Instructions and Guidance issued on 
September 9, 2013, to this Order, and using the scenarios provided in 
Appendices 1 through 10 to this Order.
    This Order is effective immediately.

    Signed at Washington, DC, this 26th day of November, 2013.
Sandra Thompson,
Deputy Director for Housing Mission and Goals By delegation.
    Dated: December 2, 2013.
Edward J. DeMarco,
Acting Director, Federal Housing Finance Agency.
    The Appendices to this order and amended Summary Instructions and 
Guidance are as follows:
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[FR Doc. 2013-30356 Filed 12-24-13; 8:45 am]
BILLING CODE 8070-01-C