Orders: Reporting by Regulated Entities of Stress Testing Results as of December 31, 2018; Summary Instructions and Guidance, 35811 [2019-15766]

Download as PDF 35811 Rules and Regulations Federal Register Vol. 84, No. 143 Thursday, July 25, 2019 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 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 Federal Housing Finance Agency. ACTION: Orders. AGENCY: 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, NaaAwaa.Tagoe@fhfa.gov; Stefan Szilagyi, Examination Manager, Office of Risk Modeling, Division of Bank Regulation (202) 649–3515, Stefan.Szilagyi@fhfa.gov; Karen Heidel, Assistant General Counsel, Office of General Counsel, (202) 649–3073, Karen.Heidel@fhfa.gov; or Mark D. Laponsky, Deputy General Counsel, Office of General Counsel, (202) 649– 3054, Mark.Laponsky@fhfa.gov. The telephone number for the Telecommunications Device for the Hearing Impaired is (800) 877–8339. SUPPLEMENTARY INFORMATION: jspears on DSK30JT082PROD with RULES SUMMARY: I. Background FHFA is responsible for ensuring that the regulated entities operate in a safe VerDate Sep<11>2014 16:09 Jul 24, 2019 Jkt 247001 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 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 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 PO 00000 Frm 00001 Fmt 4700 Sfmt 9990 E:\FR\FM\25JYR1.SGM 25JYR1

Agencies

[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]



========================================================================
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. 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.

-----------------------------------------------------------------------

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