The Federal Housing Finance Agency (FHFA) has issued Orders for stress test reporting by regulated entities, effective March 4, 2025. These Orders require financial companies with over $250 billion in assets to report their stress test results, ensuring they have enough capital to withstand severe economic conditions. The guidance includes detailed instructions on how the reports should be formatted and submitted. The Orders and instructions can be accessed online through the FHFA’s website.
Simple Explanation
The Federal Housing Finance Agency wants to make sure big financial companies can handle tough times, so they have to share special test results to prove they have enough money saved up just in case. These companies must follow the rules about how to show their results, and the details are explained online.