[Federal Register Volume 79, Number 234 (Friday, December 5, 2014)]
[Rules and Regulations]
[Pages 72120-72121]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2014-28593]


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FEDERAL HOUSING FINANCE AGENCY

12 CFR Part 1238

[No. 2014-N-15]


Orders: Reporting by Regulated Entities of Stress Testing Results 
as of September 30, 2014

AGENCY: Federal Housing Finance Agency.

ACTION: Orders.

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SUMMARY: In this document, the Federal Housing Finance Agency (FHFA) 
provides notice that it issued Orders dated December 1, 2014, with 
respect to reporting under section 165(i)(2) of the Dodd-Frank Wall 
Street Reform and Consumer Protection Act (Dodd-Frank Act).

DATES: Effective December 5, 2014. Each Order is applicable on December 
1, 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.

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

[[Page 72121]]

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 are accompanied 
by Summary Instructions and Guidance to which is appended reporting 
templates and scenarios for stress testing.

II. Orders

    For the convenience of the affected parties, the text of the 
Orders, without the accompanying Summary Instructions and Guidance and 
appendices, follows below in its entirety. You may access these Orders 
with all of the accompanying material from FHFA's Web site at: http://www.fhfa.gov/Media/PublicAffairs/Pages/FHFA-Issues-Scenarios-and-Guidance-to-FannieMae,-Freddie-Mac-and-the-Federal-Home-Loan-Banks-Regarding-Annual-Dodd-Frank-St.aspx. 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 is as follows:

Federal Housing Finance Agency

Order Nos. 2014-OR-B-3, 2014-OR-FNMA-2, and 2014-OR-FHLMC-2

ORDER ON REPORTING BY REGULATED ENTITIES OF STRESS TESTING RESULTS AS 
OF SEPTEMBER 30, 2014
    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, 12 CFR 1238.3(b) requires that FHFA issue to each regulated 
entity scenarios to be used in conducting annual stress testing;

    Whereas, the Director of FHFA considers it appropriate to Order 
each regulated entity to report to FHFA results of stress testing under 
12 CFR part 1238 using scenarios supplied by FHFA;
    Whereas, FHFA issued to each regulated entity the required 
scenarios and reporting templates on November 14, 2014, fifteen 
calendar days following the Federal Reserve Board's release of global 
shock scenario elements for use in its Dodd-Frank stress testing 
exercises; 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 operations as the Director considers 
appropriate.
    Now therefore, it is hereby Ordered as follows:
    Each regulated entity shall conduct annual stress testing and 
report to FHFA and to the Board of Governors of the Federal Reserve 
System the results of such 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, using the 
scenarios and assumptions issued on November 14, 2014, and provided in 
Appendices 4 through 11 to the Summary Instructions and Guidance that 
accompanies this Order.
    It is so ordered, this 1st day of December 2014.
    This Order is effective immediately.

Signed at Washington, DC, this 1st day of December, 2014.

Melvin L. Watt,
Director, Federal Housing Finance Agency.

    Dated: December 1, 2014.
Melvin L. Watt,
Director, Federal Housing Finance Agency.
[FR Doc. 2014-28593 Filed 12-4-14; 8:45 am]