Rule2023-04980
Orders: Reporting by Regulated Entities of Stress Testing Results as of December 31, 2022; Summary Instructions and Guidance
Primary source
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Published
March 10, 2023
Issuing agencies
Federal Housing Finance Agency
Abstract
In this document, the Federal Housing Finance Agency (FHFA) provides notice that it issued Orders, dated March 7, 2023, with respect to stress test reporting as of December 31, 2022, under section 165(i)(2) of the Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank Act), as amended by section 401 of the Economic Growth, Regulatory Relief, and Consumer Protection Act (EGRRCPA). Summary Instructions and Guidance accompanied the Orders to provide testing scenarios.
Full Text
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<title>Federal Register, Volume 88 Issue 47 (Friday, March 10, 2023)</title>
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[Federal Register Volume 88, Number 47 (Friday, March 10, 2023)]
[Rules and Regulations]
[Page 14871]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2023-04980]
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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.
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Federal Register / Vol. 88, No. 47 / Friday, March 10, 2023 / Rules
and Regulations
[[Page 14871]]
FEDERAL HOUSING FINANCE AGENCY
12 CFR Part 1238
[No. 2023-N-4]
Orders: Reporting by Regulated Entities of Stress Testing Results
as of December 31, 2022; Summary Instructions and Guidance
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 March 7, 2023, with
respect to stress test reporting as of December 31, 2022, under section
165(i)(2) of the Dodd-Frank Wall Street Reform and Consumer Protection
Act (Dodd-Frank Act), as amended by section 401 of the Economic Growth,
Regulatory Relief, and Consumer Protection Act (EGRRCPA). Summary
Instructions and Guidance accompanied the Orders to provide testing
scenarios.
DATES: Each Order is applicable March 7, 2023.
FOR FURTHER INFORMATION CONTACT: John Williams, Associate Director,
Office of Capital Policy, (202) 649-3159, <a href="/cdn-cgi/l/email-protection#216b4e494f0f76484d4d48404c52614749400f464e57"><span class="__cf_email__" data-cfemail="206a4f484e0e77494c4c49414d53604648410e474f56">[email protected]</span></a>; Sara
L. Todd, Assistant General Counsel, Office of General Counsel, (202)
649-3527, <a href="/cdn-cgi/l/email-protection#693a081b08473d060d0d290f010f08470e061f"><span class="__cf_email__" data-cfemail="74271506155a201b101034121c12155a131b02">[email protected]</span></a>; or James Jordan, Deputy General Counsel,
Office of General Counsel, (202) 649-3570, <a href="/cdn-cgi/l/email-protection#e9a388848c9ac7a3869b8d8887a98f818f88c78e869f"><span class="__cf_email__" data-cfemail="4b012a262e38650124392f2a250b2d232d2a652c243d">[email protected]</span></a>. For
TTY/TRS users with hearing and speech disabilities, dial 711 and ask to
be connected to any of the contact numbers above.
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 <a href="https://www.fhfa.gov/AboutUs/FOIAPrivacy/Pages/Reading-Room.aspx">https://www.fhfa.gov/AboutUs/FOIAPrivacy/Pages/Reading-Room.aspx</a> by clicking on ``Click here to view
Orders'' under the Final Opinions and Orders heading. You may also
access these documents at <a href="http://www.fhfa.gov/SupervisionRegulation/DoddFrankActStressTests">http://www.fhfa.gov/SupervisionRegulation/DoddFrankActStressTests</a>.
The text of the Orders is as follows:
Federal Housing Finance Agency
Order Nos. 2023-OR-FNMA-1 and 2023-OR-FHLMC-1
Reporting by Regulated Entities of Stress Testing Results as of
December 31, 2022
Whereas, section 165(i)(2) of the Dodd-Frank Wall Street Reform and
Consumer Protection Act (``Dodd-Frank Act''), as amended by section 401
of the Economic Growth, Regulatory Relief, and Consumer Protection Act
(``EGRRCPA'') requires certain financial companies with total
consolidated assets of more than $250 billion, and which are regulated
by a primary Federal financial regulatory agency, to conduct periodic
stress tests to determine whether the companies have the capital
necessary to absorb losses as a result of severely adverse economic
conditions;
Whereas, FHFA's rule implementing section 165(i)(2) of the Dodd-
Frank Act, as amended by section 401 of EGRRCPA is codified as 12 CFR
1238 and requires that ``[e]ach Enterprise 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 9, 2023; 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 Enterprise 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 7 thereto, accompanying this Order and dated March 7, 2023.
It Is So Ordered, this the 7th day of March, 2023.
This Order is effective immediately.
Signed at Washington, DC, this 7th day of March, 2023.
Sandra L. Thompson,
Director, Federal Housing Finance Agency.
Sandra L. Thompson,
Director, Federal Housing Finance Agency.
[FR Doc. 2023-04980 Filed 3-9-23; 8:45 am]
BILLING CODE 8070-01-P
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