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Federal Register / Vol. 86, No. 84 / Tuesday, May 4, 2021 / Rules and Regulations structure and processes of the Enterprise;
ii The process for identifying core business lines, including a description of the Enterprises methodology considering the requirements of 1242.3a;
iii Enterprise policies, procedures, and internal controls governing preparation and approval of the resolution plan; and iv The nature, extent, and frequency of reporting to Enterprise senior executive officers and the board of directors regarding the development, maintenance, and implementation of the Enterprises resolution plan;
2 Provide the identity and position of the Enterprise senior management official primarily responsible for overseeing the development, maintenance, implementation, and submission of the Enterprises resolution plan and for the Enterprises compliance with this part;
3 Describe the nature, extent, and results of any contingency planning or similar exercise conducted by the Enterprise since the date of the Enterprises most recently submitted resolution plan to assess the viability of or improve the resolution plan of the Enterprise; and 4 Identify and describe the relevant risk measures used by the Enterprise to report credit risk exposures both internally to its senior management and board of directors, as well as any relevant risk measures reported externally to investors or to FHFA.
f Organizational structure, interconnections, and related information. Each resolution plan shall:
1 Provide a detailed description of the Enterprises organizational structure, including i A list of all affiliates and trusts within the Enterprises organization that identifies for each affiliate and trust legal entity, the following information provided that, where such information would be identical across multiple legal entities, it may be presented in relation to a group of identified legal entities:
A The percentage of voting and nonvoting equity of each legal entity listed; and B The location, jurisdiction of incorporation, licensing, and key management associated with each material legal entity identified;
ii A mapping of the Enterprises operations, services, functions, and supports associated with each of its core business lines, identifying A The entity, including any thirdparty providers, responsible for conducting each associated operation or service that supports the functioning of
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each core business line as well as the Enterprises material asset holdings; and B Liabilities related to such operations, services, and core business lines;
2 Provide an unconsolidated balance sheet for the Enterprise and a consolidating schedule for all securitization trusts consolidated by the Enterprise;
3 Provide a schedule showing all assets and liabilities of unconsolidated Enterprise securitization trusts;
4 Include a description of the material components of the liabilities of the Enterprise and each identified core business line that, at a minimum, separately identifies types and amounts of the short-term and long-term liabilities, secured and unsecured liabilities, and subordinated liabilities;
5 Identify and describe the processes used by the Enterprise to i Determine to whom the Enterprise has pledged collateral;
ii Identify the person or entity that holds such collateral; and iii Identify the jurisdiction in which the collateral is located, and, if different, the jurisdiction in which the security interest in the collateral is enforceable against the Enterprise;
6 Describe any material off-balance sheet exposures including guarantees and contractual obligations of the Enterprise, including a mapping to each of its core business lines;
7 Describe the practices of the Enterprise and its core business lines related to the booking of trading and derivatives activities;
8 Identify material hedges of the Enterprise and its core business lines related to trading and derivative activities, including a mapping to legal entity;
9 Describe the hedging strategies of the Enterprise;
10 Describe the process undertaken by the Enterprise to establish exposure limits;
11 Identify the third-party providers with which the Enterprise has significant business connections including third parties performing or providing operations, services, functions, or supports associated with each core business line and describe the business connections, dependencies and relationships with such third party;
12 Report on the counterparty credit risk exposure to i The 20 largest single-family mortgage sellers and the 20 largest single-family mortgage servicers to the Enterprise where largest is determined as of the end of the quarter preceding submission of a resolution plan, and the Enterprise includes an
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entity that is among the largest in both categories in each separate report category; and ii All multifamily sellers and servicers to the Enterprise, based on purchasing volume during the preceding year.
13 Report on insurance in force, risk in force, and exposure and potential future exposure related to all providers of loan-level mortgage insurance;
14 Analyze whether the failure of a third-party provider to an Enterprise would likely have an adverse impact on an Enterprise or result in the Enterprise becoming in danger of default or in default, the availability of alternative providers, and the ability of the Enterprise to change providers when necessary; and 15 Identify each trading, payment, clearing, or settlement system of which the Enterprise, directly or indirectly, is a member and on which the Enterprise conducts a material number or value amount of trades or transactions, and map membership in each such system to the Enterprise and its core business lines.
g Management information systems.
1 Each resolution plan shall include:
i A detailed inventory and description of the key management information systems and applications, including systems and applications for risk management, automated underwriting, valuation, accounting, and financial and regulatory reporting, used by the Enterprise, and systems and applications containing records used to manage all qualified financial contracts.
The description of each system or application provided shall identify the legal owner or licensor, the use or function of the system or application, service level agreements related thereto, any software and system licenses, and any intellectual property associated therewith;
ii A mapping of the key management information systems and applications to core business lines of the Enterprise that use or rely on such systems and applications;
iii An identification of the scope, content, and frequency of the key internal reports that senior management of the Enterprise and core business lines use to monitor the financial health, risks, and operation of the Enterprise and core business lines;
iv A description of the process for FHFA to access the management information systems and applications identified in this paragraph g; and v A description and analysis of A The capabilities of the Enterprises management information systems to collect, maintain, and report, in a timely
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