PUBLIC LAW 102-550—OCT. 28, 1992 106 STAT. 3973 to historical experience and are judged reasonable by the Director. (E) LARGE INCREASES IN YIELDS. —I f the 10-year constant maturity Treasury yield is assumed to increase by more than 50 percent over the average yield during the preceding 9 months, the Director shall adjust the losses in paragraphs (1) and (3) to reflect a correspondingly higher rate of general price inflation. (3) NEW BUSINESS. — (A) IN GENERAL.— Any contractual commitments of the enterprise to purchase mortgages or issue securities will be fulfilled. The characteristics of resulting mortgage purchases, securities issued, and other financing will be consistent with the contractual terms of such commitments, recent experience, and the economic characteristics of the stress period. No other purchases of mortgages shall be assumed, except as provided in subparagraph (B). (B) ADDITIONAL NEW BUSINESS. —The Director may, after consideration of each of the studies required by subparagraph (C), assume that the enterprise conducts additional new biisiness during the stress period consistent with the following— (i) AMOUNfT AND PRODUCT TYPES. — The amount and types of mortgages purchased and their financing will be reasonably related to recent experience and the economic characteristics of the stress period. (ii) LOSSES.— Default and loss severity characteristics of mortgages purchased will be reasonably related to historical experience. (iii) PRICING. —Prices charged by the enterprise in purchasing new mortgages will be reasonably related to recent experience and the economic characteristics of the stress period. The Director may assume that a reasonable period of time would lapse before the enterprise would recognize and react to the characteristics of the stress period. (iv) INTEREST RATE RISK. —Interest rate risk on new mortgages purchased will occur to an extent reasonably related to historical experience. (v) RESERVES. —The enterprise must maintain reserves during and at the end of the stress period on new business conducted during the first 5 years of the stress period reasonably related to the expected future losses on such business, consistent with generally accepted accounting principles and industry accounting practice. (C) STUDIES. —Within 1 year after regulations are first issued under subsection (e), the Director of the Congressional Budget Office, and the Comptroller General of the United States shall each submit to the Committee on Banking, Housing, and Urban Affairs of the Senate and the Committee on Banking, Finance and Urban Affairs of the House of Representatives a study of the advisability and appropriate form of any new business assumptions under subparagraph (B).