[Federal Register Volume 79, Number 126 (Tuesday, July 1, 2014)]
[Rules and Regulations]
[Page 37167]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2014-15396]



12 CFR Part 1238

[No. 2014-N-8]

Order: Supplemental Order on Reporting by Regulated Entities of 
Stress Testing Results as of September 30, 2013

AGENCY: Federal Housing Finance Agency.

ACTION: Orders.


SUMMARY: In this document, the Federal Housing Finance Agency (FHFA) 
provides notice that it issued an Order to supplement its Orders dated 
November 26, 2013 and December 13, 2013, with respect to the reporting 
of each Federal Home Loan Banks' results under section 165(i)(2) of the 
Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank 

DATES: Effective July 1, 2014. The Order is applicable June 24, 2014.

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.


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. The 
Supplemental Order is 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 Supplemental Order provides to the Federal Home Loan Banks a 
revised template to use in reporting to the public the severely adverse 
results of their respective stress tests.

II. Order

    For the convenience of the affected parties, the text of the Order, 
without appendices, follows below in its entirety. You may access this 
Order with its attachment from FHFA's Web site at http://www.fhfa.gov/SupervisionRegulation/LegalDocuments/Pages/Orders.aspx. The Order 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 Supplemental Order is as follows:

Federal Housing Finance Agency

Order No. 2014-OR-B-1


    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 Sec.  1238.5(b);
    Whereas, on November 26, 2013, FHFA issued an Order to each 
regulated entity accompanied by appendices numbered 1 through 10 and 
amended Summary Instructions and Guidance relating to the 
performance of stress tests as of September 30, 2013, and the 
reporting of the results of such tests;
    Whereas, on December 13, 2013, FHFA issued a Supplemental Order 
to each regulated entity providing two additional appendices for use 
in reporting stress testing results as of September 30, 2013;
    Whereas, each of the Federal Home Loan Banks timely submitted 
its stress test results pursuant to 12 CFR part 1238 and the 
implementing Orders, instructions, and guidance;
    Whereas, after analyzing the results of each of the Federal Home 
Loan Banks' stress testing and the methodologies and practices used 
in testing, FHFA has determined that the original template designed 
for public disclosure of the severely adverse test results should be 
revised; 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 operations as the Director 
considers appropriate.

    Now Therefore, it is hereby ordered as follows:
    Each of the Federal Home Loan Banks shall publicly report as 
required by 12 CFR part 1238 the severely adverse results of the 
required stress testing using the template provided herewith as 
Attachment 1.
    It is so ordered, this 24th day of June 2014
    This Order is effective immediately.

    Signed at Washington, DC, this 24th day of June, 2014.
Melvin L. Watt,
Director, Federal Housing Finance Agency.
    Dated: June 24, 2014.
Melvin L. Watt,
Director, Federal Housing Finance Agency.
[FR Doc. 2014-15396 Filed 6-30-14; 8:45 am]