83 FR 18727 - Orders: Reporting by Regulated Entities of Stress Testing Results as of December 31, 2017; Summary Instructions and Guidance

FEDERAL HOUSING FINANCE AGENCY

Federal Register Volume 83, Issue 83 (April 30, 2018)

Page Range		18727-18727
FR Document		2018-09072

In this document, the Federal Housing Finance Agency (FHFA) provides notice that it issued Orders, dated March 1, 2018, with respect to stress test reporting as of December 31, 2017, 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 83 Issue 83 (Monday, April 30, 2018)

[Federal Register Volume 83, Number 83 (Monday, April 30, 2018)]
[Rules and Regulations]
[Page 18727]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2018-09072]



========================================================================
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. 83, No. 83 / Monday, April 30, 2018 / Rules 
and Regulations

[[Page 18727]]



FEDERAL HOUSING FINANCE AGENCY

12 CFR Part 1238

[No. 2018-N-04]


Orders: Reporting by Regulated Entities of Stress Testing Results 
as of December 31, 2017; 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 1, 2018, with 
respect to stress test reporting as of December 31, 2017, 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 30, 2018. Each Order is applicable March 1, 
2018.

FOR FURTHER INFORMATION CONTACT: John Williams, Manager, Financial 
Performance Reporting, Enterprise Financial Reporting Section, (202) 
649-3159, John.Williams@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:

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. 2018-OR-B-1, 2018-OR-FNMA-1, and 2018-FHLMC-1

Reporting by Regulated Entities of Stress Testing Results as of 
December 31, 2017
    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 1, 2018; 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 1, 2018.
    It is so ordered, this the 1st day of March, 2018.
    This Order is effective immediately.

    Signed at Washington, DC, this 1st day of March, 2018.

Melvin L. Watt, Director,

Federal Housing Finance Agency.

    Dated: April 23, 2018.
Melvin L. Watt,
Director, Federal Housing Finance Agency.
[FR Doc. 2018-09072 Filed 4-27-18; 8:45 am]
 BILLING CODE 8070-01-P

18727

Rules and Regulations Federal Register
Vol. 83, No. 83

Monday, April 30, 2018

This section of the FEDERAL REGISTER maintenance of adequate capital and Whereas, FHFA’s rule implementing
contains regulatory documents having general internal controls, that their operations section 165(i)(2) of the Dodd-Frank Act
applicability and legal effect, most of which and activities foster liquid, efficient, is codified as 12 CFR 1238 and requires
are keyed to and codified in the Code of competitive, and resilient national that ‘‘[e]ach regulated entity must file a
Federal Regulations, which is published under housing finance markets, and that they report in the manner and form
50 titles pursuant to 44 U.S.C. 1510.
carry out their public policy missions established by FHFA.’’ 12 CFR
The Code of Federal Regulations is sold by through authorized activities. See 12 1238.5(b);
the Superintendent of Documents. U.S.C. 4513. These Orders are being Whereas, The Board of Governors of
issued under 12 U.S.C. 4516(a), which the Federal Reserve System issued stress
authorizes the Director of FHFA to testing scenarios on February 1, 2018;
FEDERAL HOUSING FINANCE require by Order that the regulated and
AGENCY entities submit regular or special reports Whereas, section 1314 of the Safety
to FHFA and establishes remedies and and Soundness Act, 12 U.S.C. 4514(a)
12 CFR Part 1238 procedures for failing to make reports authorizes the Director of FHFA to
[No. 2018–N–04] required by Order. The Orders, through require regulated entities, by general or
the accompanying Summary specific order, to submit such reports on
Orders: Reporting by Regulated Instructions and Guidance, prescribe for their management, activities, and
Entities of Stress Testing Results as of the regulated entities the scenarios to be operation as the Director considers
December 31, 2017; Summary used for stress testing. The Summary appropriate.
Instructions and Guidance Instructions and Guidance also provides Now therefore, it is hereby Ordered as
to the regulated entities advice follows:
AGENCY: Federal Housing Finance concerning the content and format of Each regulated entity shall report to
Agency. reports required by the Orders and the FHFA and to the Board of Governors of
ACTION: Orders. rule. 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
provides notice that it issued Orders, For the convenience of the affected Summary Instructions and Guidance,
dated March 1, 2018, with respect to parties and the public, the text of the with Appendices 1 through 12 thereto,
stress test reporting as of December 31, Orders follows below in its entirety. The
accompanying this Order and dated
2017, under section 165(i)(2) of the Orders and Summary Instructions and
March 1, 2018.
Dodd-Frank Wall Street Reform and Guidance are also available for public
It is so ordered, this the 1st day of
Consumer Protection Act (Dodd-Frank inspection and copying at the Federal
March, 2018.
Act). Summary Instructions and Housing Finance Agency’s Freedom of
This Order is effective immediately.
Guidance accompanied the Orders to Information Act (FOIA) Reading Room
provide testing scenarios. at https://www.fhfa.gov/AboutUs/ Signed at Washington, DC, this 1st day of
FOIAPrivacy/Pages/Reading-Room.aspx March, 2018.
DATES: Effective April 30, 2018. Each
Order is applicable March 1, 2018. by clicking on ‘‘Click here to view Melvin L. Watt, Director,

FOR FURTHER INFORMATION CONTACT: John
Orders’’ under the Final Opinions and Federal Housing Finance Agency.
Orders heading. You may also access Dated: April 23, 2018.
Williams, Manager, Financial
these documents at http://www.fhfa.gov/ Melvin L. Watt,
Performance Reporting, Enterprise
SupervisionRegulation/
Financial Reporting Section, (202) 649– Director, Federal Housing Finance Agency.
DoddFrankActStressTests.
3159, John.Williams@fhfa.gov; Stefan The text of the Orders is as follows: [FR Doc. 2018–09072 Filed 4–27–18; 8:45 am]
Szilagyi, Examination Manager, Office BILLING CODE 8070–01–P
of Risk Modeling, Division of Bank Federal Housing Finance Agency
Regulation (202) 649–3515, Order Nos. 2018–OR–B–1, 2018–OR–
Stefan.Szilagyi@fhfa.gov; Karen Heidel, FNMA–1, and 2018–FHLMC–1
Assistant General Counsel, Office of DEPARTMENT OF TRANSPORTATION
General Counsel, (202) 649–3073, Reporting by Regulated Entities of Stress
Testing Results as of December 31, 2017 Federal Aviation Administration
Karen.Heidel@fhfa.gov; or Mark D.
Laponsky, Deputy General Counsel, Whereas, section 165(i)(2) of the 14 CFR Part 39
Office of General Counsel, (202) 649– Dodd-Frank Wall Street Reform and
3054, Mark.Laponsky@fhfa.gov. The Consumer Protection Act (‘‘Dodd-Frank [Docket No. FAA–2018–0305; Product
telephone number for the Act’’) requires certain financial Identifier 2013–NM–226–AD; Amendment
Telecommunications Device for the companies with total consolidated 39–19259; AD 2018–09–03]
sradovich on DSK3GMQ082PROD with RULES

Hearing Impaired is (800) 877–8339. assets of more than $10 billion, and
RIN 2120–AA64
SUPPLEMENTARY INFORMATION: which are regulated by a primary
Federal financial regulatory agency, to Airworthiness Directives; Airbus
I. Background conduct annual stress tests to determine Airplanes
FHFA is responsible for ensuring that whether the companies have the capital
the regulated entities operate in a safe necessary to absorb losses as a result of AGENCY:Federal Aviation
and sound manner, including the adverse economic conditions; Administration (FAA), DOT.

VerDate Sep<11>2014 17:01 Apr 27, 2018 Jkt 244001 PO 00000 Frm 00001 Fmt 4700 Sfmt 4700 E:\FR\FM\30APR1.SGM 30APR1

Document Created: 2018-04-28 01:04:39
Document Modified: 2018-04-28 01:04:39

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 30, 2018. Each Order is applicable March 1, 2018.
Contact		John Williams, Manager, Financial Performance Reporting, Enterprise Financial Reporting Section, (202) 649-3159, [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.
FR Citation		83 FR 18727