FHFA: Fannie Mae and Freddie Mac Dodd-Frank Act Stress Tests
August 13, 2021
Washington, D.C. – Today, the Federal Housing Finance Agency (FHFA) released reports providing the results of the 2020 and 2021 annual stress tests Fannie Mae and Freddie Mac (the Enterprises) are required to conduct under the Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank Act). The Dodd-Frank Act, as amended in 2019, requires certain financial institutions that are regulated by a federal financial regulatory agency with more than $250 billion in assets to conduct annual stress tests to determine whether they can absorb losses as a result of severely adverse economic conditions. The report, Dodd-Frank Act Stress Tests – Severely Adverse Scenario, provides updated information on possible ranges of future financial results of the Enterprises under severely adverse economic conditions.