82 FR 17933 - Orders: Reporting by Regulated Entities of Stress Testing Results as of December 31, 2016; Summary Instructions and Guidance

FEDERAL HOUSING FINANCE AGENCY

Federal Register Volume 82, Issue 71 (April 14, 2017)

Page Range		17933-17933
FR Document		2017-07519

In this document, the Federal Housing Finance Agency (FHFA) provides notice that it issued Orders, dated March 3, 2017, with respect to stress test reporting as of December 31, 2016, 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.

Federal Register, Volume 82 Issue 71 (Friday, April 14, 2017)

[Federal Register Volume 82, Number 71 (Friday, April 14, 2017)]
[Rules and Regulations]
[Page 17933]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2017-07519]



========================================================================
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. 82, No. 71 / Friday, April 14, 2017 / Rules 
and Regulations

[[Page 17933]]



FEDERAL HOUSING FINANCE AGENCY

12 CFR Part 1238

[No. 2017-N-04]


Orders: Reporting by Regulated Entities of Stress Testing Results 
as of December 31, 2016; 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 3, 2017, with 
respect to stress test reporting as of December 31, 2016, 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: Effective April 14, 2017. Each Order is applicable March 3, 
2017.

FOR FURTHER INFORMATION CONTACT: Naa Awaa Tagoe, Senior Associate 
Director, Division of Housing Mission & Goals, (202) 649-3140, 
[email protected]; Stefan Szilagyi, Examination Manager, FHLBank 
Modeling, FHLBank Office of Risk Modeling (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. 2017-OR-B-01, 2017-OR-FNMA-01, and 2017-OR-FHLMC-01

Reporting by Regulated Entities of Stress Testing Results as of 
December 31, 2016
    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 3, 2017; 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 3, 2017.
    It is so ordered, this the 3rd day of March, 2017.
    This Order is effective immediately.

    Signed at Washington, DC, this 3rd day of March, 2017.
Melvin L. Watt,
Director, Federal Housing Finance Agency.
    Dated: April 6, 2017.
Melvin L. Watt,
Director, Federal Housing Finance Agency.
[FR Doc. 2017-07519 Filed 4-13-17; 8:45 am]
BILLING CODE 8070-01-P

17933

Rules and Regulations Federal Register
Vol. 82, No. 71

Friday, April 14, 2017

This section of the FEDERAL REGISTER internal controls, that their operations Whereas, FHFA’s rule implementing
contains regulatory documents having general and activities foster liquid, efficient, section 165(i)(2) of the Dodd-Frank Act
applicability and legal effect, most of which competitive, and resilient national is codified as 12 CFR 1238 and requires
are keyed to and codified in the Code of housing finance markets, and that they that ‘‘[e]ach regulated entity must file a
Federal Regulations, which is published under carry out their public policy missions report in the manner and form
50 titles pursuant to 44 U.S.C. 1510.
through authorized activities. See 12 established by FHFA.’’ 12 CFR
The Code of Federal Regulations is sold by U.S.C. 4513. These Orders are being 1238.5(b);
the Superintendent of Documents. issued under 12 U.S.C. 4516(a), which Whereas, The Board of Governors of
authorizes the Director of FHFA to the Federal Reserve System issued stress
require by Order that the regulated testing scenarios on February 3, 2017;
FEDERAL HOUSING FINANCE entities submit regular or special reports and
AGENCY to FHFA and establishes remedies and Whereas, section 1314 of the Safety
procedures for failing to make reports and Soundness Act, 12 U.S.C. 4514(a)
12 CFR Part 1238 required by Order. The Orders, through authorizes the Director of FHFA to
[No. 2017–N–04] the accompanying Summary require regulated entities, by general or
Instructions and Guidance, prescribe for specific order, to submit such reports on
Orders: Reporting by Regulated the regulated entities the scenarios to be their management, activities, and
Entities of Stress Testing Results as of used for stress testing. The Summary operation as the Director considers
December 31, 2016; Summary Instructions and Guidance also provides appropriate.
Instructions and Guidance to the regulated entities advice Now therefore, it is hereby Ordered as
concerning the content and format of follows:
AGENCY: Federal Housing Finance reports required by the Orders and the Each regulated entity shall report to
Agency. rule. FHFA and to the Board of Governors of
ACTION: Orders. the Federal Reserve System the results
II. Orders, Summary Instructions and of the stress testing as required by 12
SUMMARY: In this document, the Federal Guidance CFR 1238, in the form and with the
Housing Finance Agency (FHFA) content described therein and in the
For the convenience of the affected
provides notice that it issued Orders, Summary Instructions and Guidance,
parties and the public, the text of the
dated March 3, 2017, with respect to with Appendices 1 through 12 thereto,
Orders follows below in its entirety. The
stress test reporting as of December 31, accompanying this Order and dated
Orders and Summary Instructions and
2016, under section 165(i)(2) of the March 3, 2017.
Guidance are also available for public
Dodd-Frank Wall Street Reform and It is so ordered, this the 3rd day of
inspection and copying at the Federal
Consumer Protection Act (Dodd-Frank March, 2017.
Housing Finance Agency’s Freedom of
Act). Summary Instructions and This Order is effective immediately.
Information Act (FOIA) Reading Room
Guidance accompanied the Orders to Signed at Washington, DC, this 3rd day of
at https://www.fhfa.gov/AboutUs/
provide testing scenarios. March, 2017.
FOIAPrivacy/Pages/Reading-Room.aspx
DATES: Effective April 14, 2017. Each by clicking on ‘‘Click here to view Melvin L. Watt,
Order is applicable March 3, 2017. Orders’’ under the Final Opinions and Director, Federal Housing Finance Agency.
FOR FURTHER INFORMATION CONTACT: Naa Orders heading. You may also access Dated: April 6, 2017.
Awaa Tagoe, Senior Associate Director, these documents at http://www.fhfa.gov/ Melvin L. Watt,
Division of Housing Mission & Goals, SupervisionRegulation/ Director, Federal Housing Finance Agency.
(202) 649–3140, NaaAwaa.Tagoe@ DoddFrankActStressTests. [FR Doc. 2017–07519 Filed 4–13–17; 8:45 am]
fhfa.gov; Stefan Szilagyi, Examination The text of the Orders is as follows: BILLING CODE 8070–01–P
Manager, FHLBank Modeling, FHLBank
Office of Risk Modeling (202) 649–3515, Federal Housing Finance Agency
Stefan.Szilagyi@fhfa.gov; Karen Heidel, Order Nos. 2017–OR–B–01, 2017–OR–
Assistant General Counsel, Office of DEPARTMENT OF TRANSPORTATION
FNMA–01, and 2017–OR–FHLMC–01
General Counsel, (202) 649–3073, Federal Aviation Administration
Karen.Heidel@fhfa.gov; or Mark D. Reporting by Regulated Entities of Stress
Laponsky, Deputy General Counsel, Testing Results as of December 31, 2016
14 CFR Part 39
Office of General Counsel, (202) 649– Whereas, section 165(i)(2) of the
3054, Mark.Laponsky@fhfa.gov. The Dodd-Frank Wall Street Reform and [Docket No. FAA–2015–7491; Directorate
telephone number for the Consumer Protection Act (‘‘Dodd-Frank Identifier 2015–NE–39–AD; Amendment 39–
Telecommunications Device for the 18854; AD 2017–08–05]
Act’’) requires certain financial
Hearing Impaired is (800) 877–8339. companies with total consolidated RIN 2120–AA64
jstallworth on DSK7TPTVN1PROD with RULES

SUPPLEMENTARY INFORMATION: assets of more than $10 billion, and
which are regulated by a primary Airworthiness Directives; General
I. Background Federal financial regulatory agency, to Electric Company Turbofan Engines
FHFA is responsible for ensuring that conduct annual stress tests to determine AGENCY: Federal Aviation
the regulated entities operate in a safe whether the companies have the capital Administration (FAA), DOT.
and sound manner, including the necessary to absorb losses as a result of
ACTION: Final rule.
maintenance of adequate capital and adverse economic conditions;

VerDate Sep<11>2014 13:38 Apr 13, 2017 Jkt 241001 PO 00000 Frm 00001 Fmt 4700 Sfmt 4700 E:\FR\FM\14APR1.SGM 14APR1

Document Created: 2017-04-14 00:56:32
Document Modified: 2017-04-14 00:56:32

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 April 14, 2017. Each Order is applicable March 3, 2017.
Contact		Naa Awaa Tagoe, Senior Associate Director, Division of Housing Mission & Goals, (202) 649-3140, [email protected]; Stefan Szilagyi, Examination Manager, FHLBank Modeling, FHLBank Office of Risk Modeling (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.
FR Citation		82 FR 17933