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Federal Housing Finance Agency (FHFA), jointly 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 Securities and Exchange Commission, is directed by the Dodd-Frank Act to adopt a regulation that will set forth requirements and processes with respect to incentive-based compensation provided to certain employees by "covered financial institutions" that the agencies regulate, which for FHFA are the Federal National Mortgage Association (Fannie Mae); the Federal Home Loan Mortgage Corporation (Freddie Mac); and the Federal Home Loan Banks, pursuant to section 956 of the Dodd-Frank Wall Street Reform and Consumer Protection Act (12 U.S.C. 5641) and sections 1311 and 1318 of the Federal Housing Enterprises Financial Safety and Soundness Act (12 U.S.C. 4511). The regulation will require each regulated entity to disclose to its regulator the structures of its incentive-based compensation arrangements, and would prohibit incentive-based compensation arrangements that encourage inappropriate risk-taking.