---
kind: "section"
citation: "12 C.F.R. § 1240.400"
title: "12"
number: "1240.400"
heading: "Stability capital buffer."
url: "https://uscodex.org/cfr/12/1240.400"
---

# §1240.400. Stability capital buffer.

- (a) **Definitions.** For purposes of this subpart:
  - (1) **Mortgage assets—** means, with respect to an Enterprise, the dollar amount equal to the sum of:
    - (i) The unpaid principal balance of its single-family mortgage exposures, including any single-family loans that secure MBS guaranteed by the Enterprise;
    - (ii) The unpaid principal balance of its multifamily mortgage exposures, including any multifamily mortgage exposures that secure MBS guaranteed by the Enterprise;
    - (iii) The carrying value of its MBS guaranteed by an Enterprise, MBS guaranteed by Ginnie Mae, PLS, and other securitization exposures (other than its retained CRT exposures); and
    - (iv) **The exposure amount of any other mortgage assets.**
  - (2) Residential mortgage debt outstanding means the dollar amount of mortgage debt outstanding secured by one- to four-family residences or multifamily residences that are located in the United States (and excluding any mortgage debt outstanding secured by commercial or farm properties).
- (b) **Amount.** An Enterprise must calculate its stability capital buffer under this section on an annual basis by December 31 of each year. The stability capital buffer of an Enterprise is equal to:
  - (1) **The ratio of—**
    - (i) The mortgage assets of the Enterprise as of December 31 of the previous calendar year; to
    - (ii) The residential mortgage debt outstanding as of December 31 of the previous calendar year, as published by FHFA;
  - (2) Minus 0.05;
  - (3) Multiplied by 5;
  - (4) Divided by 100; and
  - (5) Multiplied by the adjusted total assets of the Enterprise, as of December 31 of the previous calendar year.
- (c) **Effective date of an adjusted stability capital buffer—**
  - (1) **Increase in stability capital buffer.** An increase in the stability capital buffer of an Enterprise under this section will take effect (i.e., be incorporated into the maximum payout ratio under table 1 to [paragraph (b)(5)](#b-5) in [§ 1240.11](/cfr/12/1240.11.md)) on January 1 of the year that is one full calendar year after the increased stability capital buffer was calculated, provided that where a stability capital buffer under [paragraph (c)(2)](#c-2) of this section is calculated to be a decrease in the stability capital buffer from the previously calculated scheduled increase applicable on the same January 1, the decreased stability capital buffer under [paragraph (c)(2)](#c-2) shall take effect.
  - (2) **Decrease in stability capital buffer.** A decrease in the stability capital buffer of an Enterprise will take effect (i.e., be incorporated into the maximum payout ratio under table 1 to [paragraph (b)(5)](#b-5) in [§ 1240.11](/cfr/12/1240.11.md)) on January 1 of the year immediately following the calendar year in which the decreased stability capital buffer was calculated.

## Notes

### Amendments

[85 FR 82198, Dec. 17, 2020, as amended at 88 FR 83481, Nov. 30, 2023]

### 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.

### Amendments

[85 FR 82198, Dec. 17, 2020, as amended at 88 FR 83481, Nov. 30, 2023]