FHFAFinal Rule
Order: Reporting by Regulated Entities of Stress Testing Results as of December 31, 2024; Summary Instructions and Guidance
Finance & BankingHousing
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Summary
This regulation requires large mortgage lenders and housing finance companies to test their financial strength under stressful economic conditions and report their results to federal regulators. These tests help ensure that major players in the housing finance system can survive economic downturns without collapsing, protecting both homeowners and taxpayers.
Key Points
- 1Mortgage lenders and housing finance companies must conduct stress tests to show they can survive severe economic scenarios like recessions or housing market crashes
- 2Companies must report their test results to the Federal Housing Finance Agency (FHFA) by December 31, 2024, following specific instructions and formats
- 3The tests evaluate whether these companies have enough financial cushion to keep lending and operating during tough economic times
- 4Regulators use these results to monitor risks in the housing finance system and identify companies that might need to improve their financial position
- 5This requirement helps protect the stability of the mortgage market and reduces the risk of another housing finance crisis affecting American homeowners
Key Dates
Published
March 10, 2025
This summary is for informational purposes only. It may not capture all nuances of the regulation. Always refer to the official text for authoritative information.
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