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)

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, 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.

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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),

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[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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