12 CFR § 1240.122 - Ongoing qualification.
---
identifier: "/us/cfr/t12/s1240.122"
source: "ecfr"
legal_status: "authoritative_unofficial"
title: "12 CFR § 1240.122 - Ongoing qualification."
title_number: 12
title_name: "Banks and Banking"
section_number: "1240.122"
section_name: "Ongoing qualification."
chapter_name: "FEDERAL HOUSING FINANCE AGENCY"
subchapter_number: "C"
subchapter_name: "ENTERPRISES"
part_number: "1240"
part_name: "CAPITAL ADEQUACY OF ENTERPRISES"
positive_law: false
currency: "2026-04-05"
last_updated: "2026-04-05"
format_version: "1.1.0"
generator: "[email protected]"
authority: "12 U.S.C. 4511, 4513, 4513b, 4514, 4515, 4517, 4526, 4611-4612, 4631-36."
regulatory_source: "85 FR 82198, Dec. 17, 2020, unless otherwise noted."
cfr_part: "1240"
---
# 1240.122 Ongoing qualification.
(a) *Changes to advanced systems.* An Enterprise must meet all the minimum requirements in § 1240.121 on an ongoing basis. An Enterprise must notify FHFA when the Enterprise makes any change to an advanced system that would result in a material change in the Enterprise's advanced approaches total risk-weighted asset amount for an exposure type or when the Enterprise makes any significant change to its modeling assumptions.
(b) *Failure to comply with qualification requirements.* (1) If FHFA determines that an Enterprise fails to comply with the requirements in § 1240.121, FHFA will notify the Enterprise in writing of the Enterprise's failure to comply.
(2) The Enterprise must establish and submit a plan satisfactory to FHFA to return to compliance with the qualification requirements.
(3) In addition, if FHFA determines that the Enterprise's advanced approaches total risk-weighted assets are not commensurate with the Enterprise's credit, market, operational, or other risks, FHFA may require such an Enterprise to calculate its advanced approaches total risk-weighted assets with any modifications provided by FHFA.