[Federal Register Volume 85, Number 81 (Monday, April 27, 2020)]
[Rules and Regulations]
[Pages 23219-23220]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-08146]


=======================================================================
-----------------------------------------------------------------------

FEDERAL HOUSING FINANCE AGENCY

12 CFR Part 1238

[No. 2020-N-9]


Orders: Reporting by Regulated Entities of Stress Testing Results 
as of December 31, 2019; 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 10, 2020, with 
respect to stress test reporting as of December 31, 2019, under the 
Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank 
Act), as amended by the Economic Growth, Regulatory Relief, and 
Consumer Protection Act (EGRRCPA). Summary Instructions and Guidance 
accompanied the Orders to provide testing scenarios.

DATES: Each Order is applicable March 10, 2020.

FOR FURTHER INFORMATION CONTACT: Naa Awaa Tagoe, Senior Associate 
Director, Office of Financial Analysis, Modeling & Simulations, 
Division of Housing Mission & Goals, (202) 649-3140, 
[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 Deaf 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. 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. 2020-OR-FNMA-1 and 2020-OR-FHLMC-1

Reporting by Regulated Entities of Stress Testing Results as of 
December 31, 2019
    Whereas, section 165(i)(2) of the Dodd-Frank Wall Street Reform and 
Consumer Protection Act (``Dodd-Frank Act''), as amended by section 401 
of the Economic Growth, Regulatory Relief, and Consumer Protection Act 
(``EGRRCPA'') requires certain financial companies with total 
consolidated assets of more than $250 billion, and which are regulated 
by a primary Federal financial regulatory agency, to conduct periodic 
stress tests to determine whether the companies have the capital 
necessary to absorb losses as a result of severely adverse economic 
conditions;
    Whereas, FHFA's rule implementing section 165(i)(2) of the Dodd-
Frank Act, as amended by section 401 of EGRRCPA is codified as 12 CFR 
1238 and requires that ``[e]ach Enterprise 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 7, 2020, and supplemented 
on February 10, 2020; 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 Enterprise 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 8 thereto, accompanying this Order and dated March 10, 2020.
    It is so ordered, this the 10th day of March, 2020.

[[Page 23220]]

    This Order is effective immediately.

    Signed at Washington, DC, this 10th day of March, 2020.
Mark A. Calabria,
Director, Federal Housing Finance Agency.
[FR Doc. 2020-08146 Filed 4-24-20; 8:45 am]
 BILLING CODE 8070-01-P