Summary: FHFA is seeking comment on a proposed rule on incentive-based compensation, which has been submitted to the Federal Register as a joint proposed rule along with the Office of the Comptroller of the Currency, the Board of Governors of the Federal Reserve System, the Federal Deposit Insurance Corporation, the National Credit Union Association, and the U.S. Securities and Exchange Commission.

This proposed rule would implement Section 956 of the Dodd-Frank Wall Street Reform and Consumer Protection Act. Section 956 generally requires that the Agencies jointly issue regulations or guidelines: (1) prohibiting incentive-based payment arrangements that the Agencies determine encourage inappropriate risks by certain financial institutions by providing excessive compensation or that could lead to material financial loss; and (2) requiring those financial institutions to disclose information concerning incentive-based compensation arrangements to the appropriate Federal regulator. FHFA’s proposed rule, if finalized, would apply to Fannie Mae, Freddie Mac, and the Federal Home Loan Banks.
The proposed rule revises a proposed rule published in the Federal Register by the joint agencies on April 14, 2011. This preamble and proposed rule have not yet been published in the Federal Register, and the final version may differ from the version posted here. FHFA requests comments from the public on all aspects of the proposed rule.

Comments must be received by July 22, 2016.