12 CFR § 1240.31 - Mechanics for calculating risk-weighted assets for general credit risk.

---
identifier: "/us/cfr/t12/s1240.31"
source: "ecfr"
legal_status: "authoritative_unofficial"
title: "12 CFR § 1240.31 - Mechanics for calculating risk-weighted assets for general credit risk."
title_number: 12
title_name: "Banks and Banking"
section_number: "1240.31"
section_name: "Mechanics for calculating risk-weighted assets for general credit risk."
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"
---


# 1240.31 Mechanics for calculating risk-weighted assets for general credit risk.

(a) *General risk-weighting requirements.* An Enterprise must apply risk weights to its exposures as follows:

(1) An Enterprise must determine the exposure amount of each mortgage exposure, each other on-balance sheet exposure, each OTC derivative contract, and each off-balance sheet commitment, trade and transaction-related contingency, guarantee, repo-style transaction, forward agreement, or other similar transaction that is not:

(i) An unsettled transaction subject to § 1240.40;

(ii) A cleared transaction subject to § 1240.37;

(iii) A default fund contribution subject to § 1240.37;

(iv) A retained CRT exposure, acquired CRT exposure, or other securitization exposure subject to §§ 1240.41 through 1240.46;

(v) An equity exposure (other than an equity OTC derivative contract) subject to §§ 1240.51 and 1240.52; or

(vi) CVA risk-weighted assets subject to § 1240.36(d).

(2) An Enterprise must multiply each exposure amount by the risk weight appropriate to the exposure based on the exposure type or counterparty, eligible guarantor, or financial collateral to determine the risk-weighted asset amount for each exposure.

(b) *Total risk-weighted assets for general credit risk.* Total risk-weighted assets for general credit risk equals the sum of the risk-weighted asset amounts calculated under this section.

[88 FR 82198, Dec. 17, 2020, as amended at 88 FR 83476, Nov. 30, 2023]