---
kind: "section"
citation: "12 C.F.R. § 1248.7"
title: "12"
number: "1248.7"
heading: "Remedial actions."
url: "https://uscodex.org/cfr/12/1248.7"
---

# §1248.7. Remedial actions.

- (a) Based on its review of reports submitted by the Enterprises and reports issued by independent parties, if FHFA determines that there is misalignment, or the risk of misalignment, FHFA may:
  - (1) Require an Enterprise to undertake additional analysis, monitoring, or reporting to further the purposes of this part.
  - (2) Require an Enterprise to change covered programs, policies, and practices that FHFA determines conflict with the purposes of this part.
- (b) To address material misalignment, FHFA may require additional and expedient Enterprise actions based on:
  - (1) Consultation with the Enterprises regarding the cause of the material misalignment;
  - (2) Review of Enterprise compliance with previously agreed upon or FHFA-required actions; and
  - (3) Review of the effectiveness of such actions to determine whether they are achieving the purpose of this part.
- (c) **Depending on the severity and cause of any material misalignment, FHFA, in its discretion, may—**
  - (1) Require an Enterprise to terminate a program, policy, or practice; or
  - (2) **Require the competing Enterprise to implement a comparable program, policy, or practice.**
- (d) When requiring an Enterprise to terminate a program, policy, or practice, or implement a comparable program, policy, or practice, FHFA will consider:
  - (1) The effect on TBA-eligible securities pricing and particularly on the prepayment speeds of mortgages underlying TBA-eligible MBS; and
  - (2) **The costs borne by and the benefits likely to accrue to investors, lenders, and mortgage borrowers.**

## Notes

### Authority

Authority: 12 U.S.C. 1451 note; 1716; 4511; and 4526.

### Source

Source: 84 FR 7799, Mar. 5, 2019, unless otherwise noted.