[Federal Register Volume 84, Number 143 (Thursday, July 25, 2019)]
[Rules and Regulations]
[Page 35811]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-15766]
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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.
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Federal Register / Vol. 84, No. 143 / Thursday, July 25, 2019 / Rules
and Regulations
[[Page 35811]]
FEDERAL HOUSING FINANCE AGENCY
12 CFR Part 1238
[No. 2019-N-6]
Orders: Reporting by Regulated Entities of Stress Testing Results
as of December 31, 2018; 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)
provides notice that it issued Orders, dated March 5, 2019, with
respect to stress test reporting as of December 31, 2018, 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: Each Order is applicable March 5, 2019.
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]; 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.
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. 2019-OR-B-1, 2019-OR-FNMA-1, and 2019-OR-FHLMC-1
Reporting by Regulated Entities of Stress Testing Results as of
December 31, 2018
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 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 5, 2019; 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 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 5, 2019.
It is so ordered, this the 5th day of March 2019.
This Order is effective immediately.
Signed at Washington, DC, this 5th day of March 2019.
Joseph M. Otting,
Acting Director, Federal Housing Finance Agency.
Dated: July 18, 2019.
Mark A. Calabria,
Director, Federal Housing Finance Agency.
[FR Doc. 2019-15766 Filed 7-24-19; 8:45 am]
BILLING CODE 8070-01-P