FHFA Rule on Reporting of Dodd-Frank Act Stress Testing Results
FHFA published a Federal Register notice specifying that it issued Orders, dated March 05, 2019, with respect to the stress test reporting as of December 31, 2018, under section 165(i)(2) of the Dodd-Frank Act. Summary instructions and guidance accompanied the Orders and also provided testing scenarios. The Orders were issued to Fannie Mae, Freddie Mac, and Federal Home Loan Banks (FHLBanks). Each regulated entity shall report to FHFA and to FED 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.
FHFA is responsible for ensuring that the regulated entities operate safely and soundly, 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. 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 provide, to the regulated entities, advice concerning the content and format of reports required by the Orders and the rule.
The Enterprises (Fannie Mae and Freddie Mac) must submit results of the Baseline, Adverse, and Severely Adverse scenarios to FHFA and FED on or before May 20, 2019 and must publicly disclose a summary of the results of only the Severely Adverse scenario between August 01 and August 15. FHLBanks are to report results of the Baseline, Adverse, and Severely Adverse scenarios to FHFA and FED by August 31 and publicly disclose a summary of the results of only the Severely Adverse scenario between November 15 and November 30.
Related Links
Keywords: Americas, US, Banking, DFAST, Stress Testing, Dodd-Frank Act, Orders, Reporting, Fannie Mae, Freddie Mac, FHL Bank System, FED, FHFA
Featured Experts
James Partridge
Credit analytics expert helping clients understand, develop, and implement credit models for origination, monitoring, and regulatory reporting.
Laurent Birade
Advises U.S. and Canadian financial institutions on risk and finance integration, CCAR/DFAST stress testing, IFRS9 and CECL credit loss reserving, and credit risk practices.
María Cañamero
Skilled market researcher; growth strategist; successful go-to-market campaign developer
Related Articles
BIS and Central Banks Experiment with GenAI to Assess Climate Risks
A recent report from the Bank for International Settlements (BIS) Innovation Hub details Project Gaia, a collaboration between the BIS Innovation Hub Eurosystem Center and certain central banks in Europe
Nearly 25% G-SIBs Commit to Adopting TNFD Nature-Related Disclosures
Nature-related risks are increasing in severity and frequency, affecting businesses, capital providers, financial systems, and economies.
Singapore to Mandate Climate Disclosures from FY2025
Singapore recently took a significant step toward turning climate ambition into action, with the introduction of mandatory climate-related disclosures for listed and large non-listed companies
SEC Finalizes Climate-Related Disclosures Rule
The U.S. Securities and Exchange Commission (SEC) has finalized the long-awaited rule that mandates climate-related disclosures for domestic and foreign publicly listed companies in the U.S.
EBA Proposes Standards Related to Standardized Credit Risk Approach
The European Banking Authority (EBA) has been taking significant steps toward implementing the Basel III framework and strengthening the regulatory framework for credit institutions in the EU
US Regulators Release Stress Test Scenarios for Banks
The U.S. regulators recently released baseline and severely adverse scenarios, along with other details, for stress testing the banks in 2024. The relevant U.S. banking regulators are the Federal Reserve Bank (FED), the Federal Deposit Insurance Corporation (FDIC), and the Office of the Comptroller of the Currency (OCC).
Asian Governments Aim for Interoperability in AI Governance Frameworks
The regulatory landscape for artificial intelligence (AI), including the generative kind, is evolving rapidly, with governments and regulators aiming to address the challenges and opportunities presented by this transformative technology.
EBA Proposes Operational Risk Standards Under Final Basel III Package
The European Union (EU) has been working on the final elements of Basel III standards, with endorsement of the Banking Package and the publication of the European Banking Authority (EBA) roadmap on Basel III implementation in December 2023.
EFRAG Proposes XBRL Taxonomy and Standard for Listed SMEs Under ESRS
The European Financial Reporting Advisory Group (EFRAG), which plays a crucial role in shaping corporate reporting standards in European Union (EU), is seeking comments, until May 21, 2024, on the Exposure Draft ESRS for listed SMEs.
ECB to Expand Climate Change Work in 2024-2025
Banking regulators worldwide are increasingly focusing on addressing, monitoring, and supervising the institutions' exposure to climate and environmental risks.