Responsibilities of Boards of Directors, Corporate Practices, and Corporate Governance

10/19/2018

Number

RIN-2590-AA90

Group

Fannie Mae

Office of Finance

FHL Banks

Freddie Mac

CFR

12 CFR Parts 1239 and 1273

CFR Description

Responsibilities of Boards of Directors, Corporate Practices, and Corporate Governance; Office of Finance

Effective Date

Tue, 12/18/2018 - 12:00

Responsibilities of Boards of Directors, Corporate Practices, and Corporate Governance

FOR FURTHER INFORMATION CONTACT: Daniel Callis, Principal Risk Analyst, Office of the Chief Accountant, at Daniel.Callis@fhfa.gov or (202) 649-3448, or Ming-Yuen Meyer-Fong, Office of General Counsel, at Ming-Yuen.Meyer-Fong@fhfa.gov or (202) 649-3078 (these are not toll-free numbers), Federal Housing Finance Agency, Constitution Center, 400 Seventh Street SW, Washington, DC 20219. If you are deaf, hard of hearing, or have a speech disability, please dial 7-1-1 to access telecommunications relay services. Additionally, the TDD 1-(800) number referenced in Rulemaking documents attached to this page is obsolete and the 7-1-1 number should be used.

SUMMARY: The Federal Housing Finance Agency (FHFA) is amending its regulation on the Responsibilities of Boards of Directors, Corporate Practices, and Corporate Governance for its regulated entities. The final rule amends the existing regulation pertaining to Federal Home Loan Bank strategic business plans so that it applies as well to the Enterprises, and makes a number of adjustments and conforming changes to the existing regulation. As amended, the regulation requires that the board of directors of each regulated entity have in effect at all times a strategic business plan that describes its strategy for achieving its mission and public purposes. It extends to the Enterprise boards the existing provision requiring the board of each Federal Home Loan Bank to review the strategic business plan at least annually, re-adopt it at least once every three years, and establish reporting requirements for and monitor implementation of the strategic business plan. The final rule adds a new provision regarding current and emerging risks, repeals two outdated provisions of the existing regulation, and makes a conforming change to the Office of Finance Board of Directors regulation.

DATES: The final rule is effective on December 18, 2018.