[Federal Register Volume 83, Number 83 (Monday, April 30, 2018)]
[Rules and Regulations]
[Page 18727]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-09072]

Rules and Regulations
                                                Federal Register

This section of the FEDERAL REGISTER contains regulatory documents 
having general applicability and legal effect, most of which are keyed 
to and codified in the Code of Federal Regulations, which is published 
under 50 titles pursuant to 44 U.S.C. 1510.

The Code of Federal Regulations is sold by the Superintendent of Documents. 


Federal Register / Vol. 83, No. 83 / Monday, April 30, 2018 / Rules 
and Regulations

[[Page 18727]]


12 CFR Part 1238

[No. 2018-N-04]

Orders: Reporting by Regulated Entities of Stress Testing Results 
as of December 31, 2017; Summary Instructions and Guidance

AGENCY: Federal Housing Finance Agency.

ACTION: Orders.


SUMMARY: In this document, the Federal Housing Finance Agency (FHFA) 
provides notice that it issued Orders, dated March 1, 2018, with 
respect to stress test reporting as of December 31, 2017, under section 
165(i)(2) of the Dodd-Frank Wall Street Reform and Consumer Protection 
Act (Dodd-Frank Act). Summary Instructions and Guidance accompanied the 
Orders to provide testing scenarios.

DATES: Effective April 30, 2018. Each Order is applicable March 1, 

FOR FURTHER INFORMATION CONTACT: John Williams, Manager, Financial 
Performance Reporting, Enterprise Financial Reporting Section, (202) 
649-3159, [email protected]; Stefan Szilagyi, Examination Manager, 
Office of Risk Modeling, Division of Bank Regulation (202) 649-3515, 
[email protected]; Karen Heidel, Assistant General Counsel, 
Office of General Counsel, (202) 649-3073, [email protected]; or 
Mark D. Laponsky, Deputy General Counsel, Office of General Counsel, 
(202) 649-3054, [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. 
These Orders are being issued under 12 U.S.C. 4516(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, 
through the accompanying Summary Instructions and Guidance, prescribe 
for the regulated entities the scenarios to be used for stress testing. 
The Summary Instructions and Guidance also provides to the regulated 
entities advice concerning the content and format of reports required 
by the Orders and the rule.

II. Orders, Summary Instructions and Guidance

    For the convenience of the affected parties and the public, the 
text of the Orders follows below in its entirety. The Orders and 
Summary Instructions and Guidance are also available for public 
inspection and copying at the Federal Housing Finance Agency's Freedom 
of Information Act (FOIA) Reading Room at https://www.fhfa.gov/AboutUs/FOIAPrivacy/Pages/Reading-Room.aspx by clicking on ``Click here to view 
Orders'' under the Final Opinions and Orders heading. You may also 
access these documents at http://www.fhfa.gov/SupervisionRegulation/DoddFrankActStressTests.
    The text of the Orders is as follows:

Federal Housing Finance Agency

Order Nos. 2018-OR-B-1, 2018-OR-FNMA-1, and 2018-FHLMC-1

Reporting by Regulated Entities of Stress Testing Results as of 
December 31, 2017
    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 
    Whereas, FHFA's rule implementing section 165(i)(2) of the Dodd-
Frank Act is codified as 12 CFR 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 February 1, 2018; 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 
    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 the stress 
testing as required by 12 CFR 1238, in the form and with the content 
described therein and in the Summary Instructions and Guidance, with 
Appendices 1 through 12 thereto, accompanying this Order and dated 
March 1, 2018.
    It is so ordered, this the 1st day of March, 2018.
    This Order is effective immediately.

    Signed at Washington, DC, this 1st day of March, 2018.

Melvin L. Watt, Director,

Federal Housing Finance Agency.

    Dated: April 23, 2018.
Melvin L. Watt,
Director, Federal Housing Finance Agency.
[FR Doc. 2018-09072 Filed 4-27-18; 8:45 am]