T4
FHFA
Medium Confidence
Advisory
Interest Rate Risk Management
Enhanced supervisory expectations for interest rate risk management practices and governance
MODERATE
Impact Level
Top: model risk (4)
Classification
- Regulatory Program
- Interest Rate Risk Management
- Doc Type
- Advisory
- Effective Date
- —
- Days to Action
- —
- Comment Deadline
- —
- Published
- —
Urgency Basis
Advisory bulletin with no specific effective date - guidance document for general implementation
Operational Context
Flags
Examination Focus
Board Reporting Required
Model Validation Trigger
Affected Functions
Treasury/alm
Risk Management
Model Risk Management
Board Reporting
Regulatory Reporting
Institution Applicability
Banks
Credit Unions
Gses
Mortgage Companies
Impact by Category
Compliance
3
Operational
3
Data Governance
2
Model Risk
4
Reporting & Disclosure
3
Capital & Liquidity
4
Consumer Protection
1
Third-Party Risk
2
Key Requirements
- Implement comprehensive interest rate risk measurement and monitoring
- Establish appropriate governance and risk appetite frameworks
- Conduct regular stress testing and scenario analysis
- Ensure adequate board and senior management oversight
- Maintain robust reporting and risk management information systems
- Document policies and procedures for interest rate risk management
Scoring Rationale
Moderate impact advisory guidance requiring enhanced interest rate risk management practices. Significant model risk and capital/liquidity implications drive higher scores in those areas, while operational and compliance changes are moderate. Limited consumer protection impact as this is primarily risk management guidance.
AI Analysis Disclosure — This record, including its scores, impact assessments, and Advisory
Assessment (impact, risk, and recommended actions), was generated by an AI model and may contain errors or
omissions. The Advisory Assessment is a starting point for analysis, not a substitute for professional judgment.
Effective dates, applicability determinations, impact assessments, and any recommended actions should be
independently verified against primary regulatory source documents and reviewed by qualified compliance or legal
personnel before taking compliance action. This output does not constitute legal or compliance advice.