80 FR 35188 - Orders: Reporting by Regulated Entities of Stress Testing Results as of September 30, 2014

FEDERAL HOUSING FINANCE AGENCY

Federal Register Volume 80, Issue 118 (June 19, 2015)

Page Range		35188-35191
FR Document		2015-15194

In this document, the Federal Housing Finance Agency (FHFA) provides notice that it issued Orders dated June 10, 2015, with respect to reporting under section 165(i)(2) of the Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank Act).

Federal Register, Volume 80 Issue 118 (Friday, June 19, 2015)

[Federal Register Volume 80, Number 118 (Friday, June 19, 2015)]
[Rules and Regulations]
[Pages 35188-35191]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2015-15194]


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FEDERAL HOUSING FINANCE AGENCY

12 CFR Part 1238

[No. 2015-N-04]


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

AGENCY: Federal Housing Finance Agency.

ACTION: Orders.

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

SUMMARY: In this document, the Federal Housing Finance Agency (FHFA) 
provides notice that it issued Orders dated June 10, 2015, 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 June 19, 2015. Each Order is applicable beginning June 
10, 2015.

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),

[[Page 35189]]

[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. This 
Order is 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 Order 
directs the Banks to use a revised public disclosure template for 
publicly disclosing the severely adverse stress testing scenario 
results as of September 30, 2014. The revised template replaces the 
template initially issued on November 14, 2014 and will enhance the 
transparency of each Bank's public disclosure.

II. Orders

    For the convenience of the affected parties, the text of the Order, 
without the accompanying Summary Instructions and Guidance and 
appendices, follows below in its entirety. You may access this Order 
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 Order, new public disclosure 
template (Attachment 1), 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 Order is as follows:

Federal Housing Finance Agency

Order No. 2015-OR-B-1

Supplemental Order on Reporting by Regulated Entities of Stress Testing 
Results as of September 30, 2014
    Whereas, pursuant to the Federal Housing Finance Agency's (FHFA) 
regulation implementing section 165(i)(2) of the Dodd-Frank Wall Street 
Reform and Consumer Protection Act requiring each regulated entity to 
conduct stress tests to determine whether it has the capital necessary 
to absorb losses resulting from adverse economic conditions and report 
the results ``in the manner and form established by FHFA,'' 12 CFR 
1238.5(b); and
    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); and
    Whereas, FHFA's regulation requires that each regulated entity 
``disclose publicly a summary of the stress test results for the 
severely adverse scenario,'' 12 CFR 1238.7; and
    Whereas, on November 14, 2014, FHFA issued to each regulated entity 
scenarios for stress testing as of September 30, 2014, and on December 
1, 2014, issued Orders to each regulated entity together with Summary 
Instructions and Guidance with prescribed templates for completing, 
reporting, and disclosing the stress test results; and
    Whereas, each Federal Home Loan Bank timely filed its report of 
stress test results on or before April 30, 2015, as required by 12 CFR 
1238.5; and
    Whereas, after analyzing the results of each Federal Home Loan 
Bank's stress testing and the methodologies and practices used therein, 
FHFA has determined that the original template designed for public 
disclosure of the summary of each Bank's severely adverse scenario 
results that accompanied the Orders of December 1, 2014, should be 
revised; and
    Whereas, section 1314 of the Federal Housing Enterprises Financial 
Safety and Soundness Act, as amended, 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 Federal Home Loan Bank shall publicly disclose and report, as 
required by 12 CFR part 1238, a summary of the severely adverse 
scenario results of its stress testing using the template provided 
herewith as the attachment entitled ``FHLBank Dodd-Frank Stress Test 
Template--SEVERLY ADVERSE (Disclosure to the Public).''
    It is so ordered, this 10th day of June 2015.
    This Order is effective immediately.

    Signed at Washington, DC, this 10th day of June, 2015.

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


    Dated: June 10, 2015.
Melvin L. Watt,
Director, Federal Housing Finance Agency.
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[FR Doc. 2015-15194 Filed 6-18-15; 8:45 am]
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Federal Register / Vol. 80, No. 118 / Friday, June 19, 2015 / Rules and Regulations 35189

mark.laponsky@fhfa.gov. The telephone The Order, new public disclosure reporting, and disclosing the stress test
number for the Telecommunications template (Attachment 1), and Summary results; and
Device for the Hearing Impaired is (800) Instructions and Guidance will be Whereas, each Federal Home Loan
877–8339. available for public inspection and Bank timely filed its report of stress test
SUPPLEMENTARY INFORMATION: copying at the Federal Housing Finance results on or before April 30, 2015, as
Agency, Eighth Floor, 400 Seventh St. required by 12 CFR 1238.5; and
I. Background SW., Washington, DC 20024. To make Whereas, after analyzing the results of
FHFA is responsible for ensuring that an appointment, call (202) 649–3804. each Federal Home Loan Bank’s stress
the regulated entities operate in a safe The text of the Order is as follows: testing and the methodologies and
and sound manner, including the Federal Housing Finance Agency practices used therein, FHFA has
maintenance of adequate capital and determined that the original template
Order No. 2015–OR–B–1 designed for public disclosure of the
internal controls; that their operations
and activities foster liquid, efficient, Supplemental Order on Reporting by summary of each Bank’s severely
competitive, and resilient national Regulated Entities of Stress Testing adverse scenario results that
housing finance markets; and that they Results as of September 30, 2014 accompanied the Orders of December 1,
carry out their public policy missions 2014, should be revised; and
Whereas, pursuant to the Federal
through authorized activities. See 12 Whereas, section 1314 of the Federal
Housing Finance Agency’s (FHFA)
U.S.C. 4513. This Order is being issued Housing Enterprises Financial Safety
regulation implementing section
under 12 U.S.C. 4514(a), which and Soundness Act, as amended, 12
165(i)(2) of the Dodd-Frank Wall Street
authorizes the Director of FHFA to Reform and Consumer Protection Act U.S.C. 4514(a), authorizes the Director
require by Order that the regulated requiring each regulated entity to of FHFA to require regulated entities, by
entities submit regular or special reports conduct stress tests to determine general or specific order, to submit such
to FHFA and establishes remedies and whether it has the capital necessary to reports on their management, activities,
procedures for failing to make reports absorb losses resulting from adverse and operations as the Director considers
required by Order. The Order directs the economic conditions and report the appropriate.
Banks to use a revised public disclosure results ‘‘in the manner and form Now therefore, it is hereby Ordered as
template for publicly disclosing the established by FHFA,’’ 12 CFR follows:
severely adverse stress testing scenario 1238.5(b); and Each Federal Home Loan Bank shall
results as of September 30, 2014. The Whereas, FHFA’s rule implementing publicly disclose and report, as required
revised template replaces the template section 165(i)(2) of the Dodd-Frank Act by 12 CFR part 1238, a summary of the
initially issued on November 14, 2014 is codified as 12 CFR part 1238 and severely adverse scenario results of its
and will enhance the transparency of requires that ‘‘[e]ach regulated entity stress testing using the template
each Bank’s public disclosure. must file a report in the manner and provided herewith as the attachment
form established by FHFA,’’ 12 CFR entitled ‘‘FHLBank Dodd-Frank Stress
II. Orders Test Template—SEVERLY ADVERSE
1238.5(b); and
For the convenience of the affected Whereas, FHFA’s regulation requires (Disclosure to the Public).’’
parties, the text of the Order, without that each regulated entity ‘‘disclose It is so ordered, this 10th day of June
the accompanying Summary publicly a summary of the stress test 2015.
Instructions and Guidance and results for the severely adverse This Order is effective immediately.
appendices, follows below in its scenario,’’ 12 CFR 1238.7; and Signed at Washington, DC, this 10th day of
entirety. You may access this Order Whereas, on November 14, 2014, June, 2015.
with all of the accompanying material FHFA issued to each regulated entity Melvin L. Watt,
from FHFA’s Web site at: http:// scenarios for stress testing as of Director, Federal Housing Finance Agency.
www.fhfa.gov/Media/PublicAffairs/ September 30, 2014, and on December
Pages/FHFA-Issues-Scenarios-and- 1, 2014, issued Orders to each regulated Dated: June 10, 2015.
Guidance-to-FannieMae,-Freddie-Mac- entity together with Summary Melvin L. Watt,
and-the-Federal-Home-Loan-Banks- Instructions and Guidance with Director, Federal Housing Finance Agency.
Regarding-Annual-Dodd-Frank-St.aspx. prescribed templates for completing, BILLING CODE 8070–01–P
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Federal Register / Vol. 80, No. 118 / Friday, June 19, 2015 / Rules and Regulations 35191

[FR Doc. 2015–15194 Filed 6–18–15; 8:45 am] phone: 860–565–8770; fax: 860–565– rotor, removal of the HPC 7th stage IB
BILLING CODE 8070–01–C 4503. You may view this service rotor silver-plated nuts, and the
information at the FAA, Engine & installation of non-silver plated nuts.
Propeller Directorate, 12 New England This service information is reasonably
DEPARTMENT OF TRANSPORTATION Executive Park, Burlington, MA. For available because the interested parties
information on the availability of this have access to it through their normal
Federal Aviation Administration material at the FAA, call 781–238–7125. course of business or by the means
It is also available on the Internet at identified in the ADDRESSES section of
14 CFR Part 39 http://www.regulations.gov by searching this AD.
for and locating Docket No. FAA–2015–
[Docket No. FAA–2015–0266; Directorate
0266. FAA’s Determination
Identifier 2015–NE–03–AD; Amendment 39–
18185; AD 2015–12–10] We are issuing this AD because we
Examining the AD Docket
evaluated all the relevant information
RIN 2120–AA64 You may examine the AD docket on and determined the unsafe condition
the Internet at http:// described previously is likely to exist or
Airworthiness Directives; Pratt & www.regulations.gov by searching for develop in other products of the same
Whitney Division Turbofan Engines and locating Docket No. FAA–2015– type design.
AGENCY: Federal Aviation 0266; or in person at the Docket
Management Facility between 9 a.m. AD Requirements
Administration (FAA), DOT.
and 5 p.m., Monday through Friday, This AD requires initial and repetitive
ACTION: Final rule; request for
except Federal holidays. The AD docket BSIs of the HPC 7th stage IB rotor. This
comments. contains this AD, the regulatory AD also requires as terminating action
SUMMARY: We are adopting a new evaluation, any comments received, and to replace the HPC 7th stage IB rotor and
airworthiness directive (AD) for all Pratt other information. The street address for HPC 7th stage IB rotor silver-plated nuts
& Whitney Division (PW) PW6122A and the Docket Office (phone: 800–647– with non-silver-plated nuts.
PW6124A turbofan engines. This AD 5527) is in the ADDRESSES section.
Comments will be available in the AD FAA’s Justification and Determination
requires initial and repetitive borescope of the Effective Date
inspections (BSIs) of the high-pressure docket shortly after receipt.
compressor (HPC) 7th stage integrally FOR FURTHER INFORMATION CONTACT: No domestic operators use this
bladed (IB) rotor aft integral arm for Wego Wang, Aerospace Engineer, product. Therefore, we find that notice
cracks until replacement of the HPC 7th Engine Certification Office, FAA, Engine and opportunity for prior public
stage IB rotor using non-silver-plated & Propeller Directorate, 12 New England comment are unnecessary and that good
nuts. This AD was prompted by reports Executive Park, Burlington, MA 01803; cause exists for making this amendment
of crack finds in the HPC 7th stage IB phone: 781–238–7134; fax: 781–238– effective in less than 30 days.
rotor. We are issuing this AD to prevent 7199; email: wego.wang@faa.gov. Comments Invited
HPC 7th stage IB rotor fractures, which SUPPLEMENTARY INFORMATION:
This AD is a final rule that involves
could lead to uncontained engine failure Discussion requirements affecting flight safety and
and damage to the airplane.
We received reports of cracks in the was not preceded by notice and an
DATES: This AD is effective July 6, 2015. opportunity for public comment.
PW6122A and the PW6124A HPC 7th
The Director of the Federal Register stage IB rotor aft integral arm. The root However, we invite you to send any
approved the incorporation by reference cause is the presence of silver-plated written data, views, or arguments about
of certain publications listed in this AD nuts reacting with hot titanium in a high this AD. Send your comments to an
as of July 6, 2015. sulfur/high chlorine environment. This address listed under the ADDRESSES
We must receive comments on this AD requires initial and repetitive BSIs section. Include ‘‘Docket No. FAA–
AD by August 3, 2015. of the HPC 7th stage IB rotor. This AD 2015–0266; Directorate Identifier 2015–
ADDRESSES: You may send comments, also requires, as terminating action, NE–03–AD’’ at the beginning of your
using the procedures found in 14 CFR replacement of the HPC 7th stage IB comments. We specifically invite
11.43 and 11.45, by any of the following rotor and HPC 7th stage IB rotor silver- comments on the overall regulatory,
methods: plated nuts with non-silver-plated nuts. economic, environmental, and energy
• Federal eRulemaking Portal: Go to This condition, if not corrected, could aspects of this AD. We will consider all
http://www.regulations.gov. Follow the result in HPC 7th stage IB rotor comments received by the closing date
instructions for submitting comments. fractures. We are issuing this AD to and may amend this AD because of
• Fax: 202–493–2251. prevent HPC 7th stage IB rotor fractures, those comments.
• Mail: U.S. Department of which could lead to uncontained engine We will post all comments we
Transportation, Docket Operations, M– failure and damage to the airplane. receive, without change, to http://
30, West Building Ground Floor, Room www.regulations.gov, including any
W12–140, 1200 New Jersey Avenue SE., Related Service Information Under 1
personal information you provide. We
Washington, DC 20590. CFR Part 51
will also post a report summarizing each
• Hand Delivery: U.S. Department of We reviewed PW Engineering substantive verbal contact we receive
Transportation, Docket Operations, M– Authorization (EA) No. 15MM008, about this AD.
30, West Building Ground Floor, Room Revision A, dated March 24, 2015. We
W12–140, 1200 New Jersey Avenue SE., also reviewed PW Service Bulletin (SB) Costs of Compliance
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Washington, DC 20590, between 9 a.m. No. PW6ENG 72–46, dated March 5, We estimate that this AD will affect 0
and 5 p.m., Monday through Friday, 2015. The EA describes procedures for engines installed on airplanes of U.S.
except Federal holidays. BSIs of the HPC 7th stage IB rotor aft registry. We also estimate that it would
For service information identified in integral arm for cracks using the split- take about 8 hours per engine to comply
this AD, contact Pratt & Whitney, 400 case method. The SB describes removal with this AD. The average labor rate is
Main St., East Hartford, CT 06108; and replacement of the HPC 7th stage IB $85 per hour. Based on these figures, we

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Document Created: 2018-02-22 11:10:08
Document Modified: 2018-02-22 11:10:08

Category		Regulatory Information
Collection		Federal Register
sudoc Class		AE 2.7: GS 4.107: AE 2.106:
Publisher		Office of the Federal Register, National Archives and Records Administration
Section		Rules and Regulations
Action		Orders.
Dates		Effective June 19, 2015. Each Order is applicable beginning June 10, 2015.
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.
FR Citation		80 FR 35188