---
kind: "section"
citation: "12 C.F.R. § 1240.122"
title: "12"
number: "1240.122"
heading: "Ongoing qualification."
url: "https://uscodex.org/cfr/12/1240.122"
---

# §1240.122. Ongoing qualification.

- (a) **Changes to advanced systems.** An Enterprise must meet all the minimum requirements in [§ 1240.121](/cfr/12/1240.121.md) 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](/cfr/12/1240.121.md), 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.

## Notes

### Authority

Authority: 12 U.S.C. 4511, 4513, 4513b, 4514, 4515, 4517, 4526, 4611-4612, 4631-36.

### Source

Source: 85 FR 82198, Dec. 17, 2020, unless otherwise noted.