PART 1209—RULES OF PRACTICE AND PROCEDURE Authority: 5 U.S.C. 554, 556, 557, and 701 et seq.; Source: 76 FR 53607, Aug. 26, 2011, unless otherwise noted. Subpart A—Scope and Authority § 1209.1 Scope. (a) Authority. et seq., et seq., 1 1 See et seq., (b) Enforcement Proceedings. (c) Rules of Practice and Procedure. (1) Enforcement proceedings under sections 1371 through 1379D of the Safety and Soundness Act, as amended (12 U.S.C. 4631 through 4641); (2) Removal, prohibition, and civil money penalty proceedings for violations of post-employment restrictions imposed by applicable law; (3) Proceedings under section 102 of the Flood Disaster Protection Act of 1973, as amended (42 U.S.C. 4012a) to assess civil money penalties; and (4) Enforcement proceedings under sections 1341 through 1348 of the Safety and Soundness Act, as amended (12 U.S.C. 4581 through 4588), and section 10C of the Federal Home Loan Bank Act, as amended (12 U.S.C. 1430c), except where the Rules of Practice and Procedure in subpart C are inconsistent with such statutory provisions or with part 1281 or 1282 of this title, in which case the statutory or regulatory provisions shall apply. (d) Representation and conduct. (e) Civil money penalty inflation adjustments. 2 2 (f) Informal proceedings. [76 FR 53607, Aug. 26, 2011, as amended at 78 FR 37103, June 20, 2013; 90 FR 59965, Dec. 23, 2025] § 1209.2 Rules of construction. For purposes of this part: (a) Any term in the singular includes the plural and the plural includes the singular, if such use would be appropriate; (b) Any use of a masculine, feminine, or neuter gender encompasses all three, if such use would be appropriate; and (c) Unless the context requires otherwise, a party's representative of record, if any, on behalf of that party, may take any action required to be taken by the party. § 1209.3 Definitions. For purposes of this part, unless explicitly stated to the contrary: Adjudicatory proceeding Agency Associated with the regulated entity Authorizing statutes Bank Act et seq. Board or Board of Directors Decisional employee Director Enterprise Entity-affiliated party Executive officer FHFA Notice of charges Office of Finance Party Person Presiding officer Regulated entity Representative of record Respondent Safety and Soundness Act et seq. Violation Subpart B—Enforcement Proceedings Under Sections 1371 Through 1379D of the Safety and Soundness Act § 1209.4 Scope and authority. The rules of practice and procedure set forth in Subpart C (Rules of Practice and Procedure) of this part shall be applicable to any hearing on the record conducted by FHFA in accordance with sections 1371 through 1379D of the Safety and Soundness Act (12 U.S.C. 4631 through 4641), as follows: (a) Cease-and-desist proceedings under sections 1371 and 1373 of the Safety and Soundness Act, (12 U.S.C. 4631, 4633); (b) Civil money penalty assessment proceedings under sections 1373 and 1376 of the Safety and Soundness Act, (12 U.S.C. 4633, 4636); and (c) Removal and prohibition proceedings under sections 1373 and 1377 of the Safety and Soundness Act, (12 U.S.C. 4633, 4636a), except removal proceedings under section 1377(h) of the Safety and Soundness Act, (12 U.S.C. 4636a(h)). § 1209.5 Cease and desist proceedings. (a) Cease and desist proceedings Authority In general. (ii) Hearing on the record. (iii) Consent to order. (2) Unsatisfactory rating. (3) Order. (b) Affirmative action to correct conditions resulting from violations or activities. (1) Require the regulated entity or entity-affiliated party to make restitution, or to provide reimbursement, indemnification, or guarantee against loss, if— (i) Such entity or party or finance facility was unjustly enriched in connection with such practice or violation, or (ii) The violation or practice involved a reckless disregard for the law or any applicable regulations, or prior order of the Director; (2) Require the regulated entity to seek restitution, or to obtain reimbursement, indemnification, or guarantee against loss; as (3) Restrict asset or liability growth of the regulated entity; (4) Require the regulated entity to obtain new capital; (5) Require the regulated entity to dispose of any loan or asset involved; (6) Require the regulated entity to rescind agreements or contracts; (7) Require the regulated entity to employ qualified officers or employees (who may be subject to approval by the Director at the direction of the Director); and (8) Require the regulated entity to take such other action, as the Director determines appropriate, including limiting activities. (c) Authority to limit activities. (d) Effective date of order; judicial review Effective date. (2) Judicial review. § 1209.6 Temporary cease and desist orders. (a) Temporary cease and desist orders Grounds for issuance. (i) Issue a temporary order requiring that regulated entity or entity-affiliated party to cease and desist from any violation or practice specified in the notice of charges; and (ii) Require that regulated entity or entity-affiliated party to take affirmative action to prevent or remedy any insolvency, dissipation, condition, or prejudice, pending completion of the proceedings. (2) Additional requirements. (b) Effective date of temporary order. (c) Incomplete or inaccurate records Temporary order. (i) The cessation of any activity or practice that gave rise, whether in whole or in part, to the incomplete or inaccurate state of the books or records; or (ii) Affirmative action to restore the books or records to a complete and accurate state. (2) Effective period. (d) Judicial review. (e) Enforcement of temporary order. § 1209.7 Civil money penalties. (a) Civil money penalty proceedings In general. (2) Amount of penalty First Tier. (ii) Second Tier. (iii) Third Tier. (A) Knowingly— ( 1 ( 2 ( 3 (B) Knowingly or recklessly causes a substantial loss to the regulated entity or a substantial pecuniary gain or other benefit to such party by reason of such violation, practice, or breach. (b) Maximum amounts Maximum daily penalty. (2) Inflation Adjustment Act. (c) Factors in determining amount of penalty. (1) The gravity of the violation, practice, or breach; (2) Any history of prior violations or supervisory actions, or any attempts at concealment; (3) The effect of the penalty on the safety and soundness of the regulated entity or the Office of Finance; (4) Any loss or risk of loss to the regulated entity or to the Office of Finance; (5) Any benefits received or derived, whether directly or indirectly, by the respondent(s); (6) Any injury to the public; (7) Any deterrent effect on future violations, practices, or breaches; (8) The financial capacity of the respondent(s), or any unusual circumstance(s) of hardship upon an executive officer, director, or other individual; (9) The promptness, cost, and effectiveness of any effort to remedy or ameliorate the consequences of the violation, practice, or breach; (10) The candor and cooperation, if any, of the respondent(s); and (11) Any other factors the Director may determine by regulation to be appropriate. (d) Review of imposition of penalty. § 1209.8 Removal and prohibition proceedings. (a) Removal and prohibition proceedings Authority to issue order. (2) Applicability. (i) That party, officer, or director has, directly or indirectly— (A) Violated— (1) Any law or regulation; (2) Any cease and desist order that has become final; (3) Any condition imposed in writing by the Director in connection with an application, notice, or other request by a regulated entity; or (4) Any written agreement between such regulated entity and the Director; (B) Engaged or participated in any unsafe or unsound practice in connection with any regulated entity or business institution; or (C) Committed or engaged in any act, omission, or practice which constitutes a breach of such party's fiduciary duty; (ii) By reason of such violation, practice, or breach— (A) Such regulated entity or business institution has suffered or likely will suffer financial loss or other damage; or (B) Such party directly or indirectly received financial gain or other benefit; and (iii) The violation, practice, or breach described in subparagraph (i) of this section— (A) Involves personal dishonesty on the part of such party; or (B) Demonstrates willful or continuing disregard by such party for the safety or soundness of such regulated entity or business institution. (3) Applicability to business entities. (b) Suspension order Suspension or prohibition authorized. (i) Determines that such action is necessary for the protection of the regulated entity or the Office of Finance; and (ii) Serves such party with written notice of the order. (2) Effective period. (3) Copy of order to be served on regulated entity. (c) Notice; hearing and order Written notice. (2) Hearing. See (3) Consent. (4) Issuance of order of suspension or removal. (i) A party is deemed to have consented to the issuance of an order under paragraph (d); or (ii) Upon the record made at the hearing, the Director finds that any of the grounds specified in the notice have been established. (5) Effectiveness of order. (d) Prohibition of certain activities and industry-wide prohibition Prohibition of certain activities. (i) Participate in any manner in the conduct of the affairs of any regulated entity or the Office of Finance; (ii) Solicit, procure, transfer, attempt to transfer, vote, or attempt to vote any proxy, consent, or authorization with respect to any voting rights in any regulated entity; (iii) Violate any voting agreement previously approved by the Director; or (iv) Vote for a director, or serve or act as an entity-affiliated party of a regulated entity or as an officer or director of the Office of Finance. (2) Industry-wide prohibition. (3) Relief from industry-wide prohibition at the discretion of the Director Relief from order. (ii) No private right of action; no final agency action. (4) Violation of industry-wide prohibition. (e) Stay of suspension or prohibition of entity-affiliated party. § 1209.9 Supervisory actions not affected. As provided by section 1311(c) of the Safety and Soundness Act (12 U.S.C. 4511(c)), the authority of the Director to take action under subtitle A of the Safety and Soundness Act (12 U.S.C. 4611 et seq. e.g., et seq. Subpart C—Rules of Practice and Procedure § 1209.10 Authority of the Director. The Director may, at any time during the pendency of a proceeding, perform, direct the performance of, or waive performance of any act that could be done or ordered by the presiding officer. § 1209.11 Authority of the Presiding Officer. (a) General rule. (b) Powers. (1) Control the proceedings. (ii) Upon reasonable notice to the parties, reset or change the date, time, or place (within the District of Columbia) of an evidentiary hearing; (2) Continue or recess the hearing in whole or in part for a reasonable period of time; (3) Hold conferences to address legal or factual issues, or evidentiary matters materially relevant to the charges or allowable defenses; to regulate the timing and scope of discovery and rule on discovery plans; or otherwise to consider matters that may facilitate an effective, fair, and expeditious disposition of the proceeding; (4) Administer oaths and affirmations; (5) Issue and enforce subpoenas, subpoenas duces tecum, (6) Take and preserve testimony under oath; (7) Rule on motions and other procedural matters appropriate in an adjudicatory proceeding, except that only the Director shall have the power to grant summary disposition or any motion to dismiss the proceeding or to make a final determination of the merits of the proceeding; (8) Take all actions authorized under this part to regulate the scope, timing, and completion of discovery of any non-privileged documents that are materially relevant to the charges or allowable defenses; (9) Regulate the course of the hearing and the conduct of representatives and parties; (10) Examine witnesses; (11) Receive materially relevant evidence, and rule upon the admissibility of evidence or exclude, limit, or otherwise rule on offers of proof; (12) Upon motion of a party, take official notice of facts; (13) Recuse himself upon his own motion or upon motion made by a party; (14) Prepare and present to the Director a recommended decision as provided in this part; (15) Establish time, place, and manner limitations on the attendance of the public and the media for any public hearing; and (16) Do all other things necessary or appropriate to discharge the duties of a presiding officer. § 1209.12 Public hearings; closed hearings. (a) General rule. sua sponte (b) Motion for closed hearing. (c) Filing documents under seal. (d) Procedures for closed hearing. in camera § 1209.13 Good faith certification. (a) General requirement. (b) Effect of signature. pro se (i) The representative of record or party has read the filing or submission of record; (ii) To the best of his knowledge, information and belief formed after reasonable inquiry, the filing or submission of record is well-grounded in fact and is warranted by existing law or a good faith, non-frivolous argument for the extension, modification, or reversal of existing law, regulation, or FHFA order or policy; and (iii) The filing or submission of record is not made for any improper purpose, such as to harass or to cause unnecessary delay or needless increase in the cost of litigation. (2) If a filing or submission of record is not signed, the presiding officer shall strike the filing or submission of record, unless it is signed promptly after the omission is called to the attention of the pleader or movant. (c) Effect of making oral motion or argument. § 1209.14 Ex parte communications. (a) Definition Ex parte (i) An interested person outside FHFA (including the person's representative of record); and (ii) The presiding officer handling that proceeding, the Director, a decisional employee assigned to that proceeding, or any other person who is or may be reasonably expected to be involved in the decisional process. (2) A communication that is procedural in that it does not concern the merits of an adjudicatory proceeding, such as a request for status of the proceeding, does not constitute an ex parte (b) Prohibition of ex parte communications. ex parte ex parte (c) Procedure upon occurrence of ex parte communication. ex parte ex parte (d) Sanctions. ex parte ex parte (e) Consultations by presiding officer. ex parte (f) Separation of functions. § 1209.15 Filing of papers. (a) Filing. (b) Manner of filing. (1) Overnight delivery. (2) U.S. Mail. (3) Electronic media. (c) Formal requirements as to papers filed Form. 1/2 (2) Signature. (3) Caption. (4) Number of copies. (5) Content format. e.g., © © © [76 FR 53607, Aug. 26, 2011, as amended at 80 FR 80233, Dec. 24, 2015] § 1209.16 Service of papers. (a) Except as otherwise provided, a party filing papers or serving a subpoena shall serve a copy upon the representative of record for each party to the proceeding so represented, and upon any party who is not so represented, in accordance with the requirements of this section. (b) Except as provided in paragraphs (c)(2) and (d) of this section, a serving party shall use one or more of the following methods of service: (1) Personal service; (2) Overnight U.S. Postal Service delivery or delivery by a reliable commercial delivery service for same day or overnight delivery to the parties' respective street addresses; or (3) First class, registered, or certified mail via the U.S. Postal Service; and (4) For transmission by electronic media, each party shall promptly provide the presiding officer and all parties, in writing, an active electronic mail address where service will be accepted on behalf of such party. Any document transmitted via electronic mail for service on a party shall comply in all respects with the requirements of § 1209.15(c). (5) Service of pleadings or other papers made by facsimile may not exceed a total page count of 30 pages. Any paper served by facsimile transmission shall meet the requirements of § 1209.15(c). (6) Any party serving a pleading or other paper by electronic media under paragraph (4) of this section also shall concurrently serve that pleading or paper by one of the methods specified in paragraphs (1) through (5) of this section. (c) By the Director or the presiding officer. (2) If a notice of appearance has not been filed in the proceeding for a party in accordance with § 1209.72, the Director or the presiding officer shall make service upon the party by any of the following methods: (i) By personal service; (ii) If the person to be served is an individual, by delivery to a person of suitable age and discretion at the physical location where the individual resides or works; (iii) If the person to be served is a corporation or other association, by delivery to an officer, managing or general agent, or to any other agent authorized by appointment or by law to receive service and, if the agent is one authorized by statute to receive service and the statute so requires, by also mailing a copy to the party; (iv) By registered or certified mail addressed to the person's last known address; or (v) By any other method reasonably calculated to give actual notice. (d) Subpoenas. (1) By personal service; (2) If the person to be served is an individual, by delivery to a person of suitable age and discretion at the physical location where the individual resides or works; (3) If the person to be served is a corporation or other association, by delivery to an officer, managing or general agent, or to any other agent authorized by appointment or by law to receive service and, if the agent is one authorized by statute to receive service and the statute so requires, by also mailing a copy to the party; (4) By registered or certified mail addressed to the person's last known address; or (5) By any other method reasonably calculated to give actual notice. (e) Area of service. (f) Proof of service. § 1209.17 Time computations. (a) General rule. (b) When papers are deemed to be filed or served. (i) In the case of personal service or same day reliable commercial delivery service, upon actual service; (ii) In the case of U.S. Postal Service or reliable commercial overnight delivery service, or first class, registered, or certified mail, upon deposit in or delivery to an appropriate point of collection; (iii) In the case of transmission by electronic media, as specified by the authority receiving the filing, in the case of filing; or (iv) In the case of transmission by electronic media or facsimile, when the device through which the document was sent provides a reliable indicator that the document has been received by the opposing party, in the case of service. (2) The effective filing and service dates specified in paragraph (b)(1) of this section may be modified by the Director or the presiding officer, or by agreement of the parties in the case of service. (c) Calculation of time for service and filing of responsive papers. (1) If service was made by delivery to the U.S. Postal Service for longer than overnight delivery service by first class, registered, or certified mail, add three calendar days to the prescribed period for the responsive pleading or other filing. (2) If service was personal, or was made by delivery to the U.S. Postal Service or any reliable commercial delivery service for overnight delivery, add one calendar-day to the prescribed period for the responsive pleading or other filing. (3) If service was made by electronic media transmission or facsimile, add one calendar-day to the prescribed period for the responsive pleading or other filing—unless otherwise determined by the Director or the presiding officer sua sponte, § 1209.18 Change of time limits. Except as otherwise by law required, the presiding officer may extend any time limit that is prescribed above or in any notice or order issued in the proceedings. After the referral of the case to the Director pursuant to § 1209.53, the Director may grant extensions of the time limits for good cause shown. Extensions may be granted on the motion of a party after notice and opportunity to respond is afforded all nonmoving parties, or on the Director's or the presiding officer's own motion. § 1209.19 Witness fees and expenses. Witnesses (other than parties) subpoenaed for testimony (or for a deposition in lieu of personal appearance at a hearing) shall be paid the same fees for attendance and mileage as are paid in the United States district courts in proceedings in which the United States is a party, provided that, in the case of a discovery subpoena addressed to a party, no witness fees or mileage shall be paid. Fees for witnesses shall be tendered in advance by the party requesting the subpoena, except that fees and mileage need not be tendered in advance where FHFA is the party requesting the subpoena. FHFA shall not be required to pay any fees to or expenses of any witness who was not subpoenaed by FHFA. § 1209.20 Opportunity for informal settlement. Any respondent may, at any time in the proceeding, unilaterally submit to FHFA's counsel of record written offers or proposals for settlement of a proceeding without prejudice to the rights of any of the parties. No such offer or proposal shall be made to any FHFA representative other than FHFA counsel of record. Submission of a written settlement offer does not provide a basis for adjourning, deferring or otherwise delaying all or any portion of a proceeding under this part. No settlement offer or proposal, or any subsequent negotiation or resolution, is admissible as evidence in any proceeding. § 1209.21 Conduct of examination. Nothing in this part limits or constrains in any manner any duty, authority, or right of FHFA to conduct or to continue any examination, investigation, inspection, or visitation of any regulated entity or entity-affiliated party. § 1209.22 Collateral attacks on adjudicatory proceeding. If an interlocutory appeal or collateral attack is brought in any court concerning all or any part of an adjudicatory proceeding, the challenged adjudicatory proceeding shall continue without regard to the pendency of that court proceeding. No default or other failure to act as directed in the adjudicatory proceeding within the times prescribed in subpart C of this part shall be excused based on the pendency before any court of any interlocutory appeal or collateral attack. § 1209.23 Commencement of proceeding and contents of notice of charges. Proceedings under subpart C of this part are commenced by the Director by the issuance of a notice of charges, as defined in § 1209.3(p), that must be served upon a respondent. A notice of charges shall state all of the following: (a) The legal authority for the proceeding and for FHFA's jurisdiction over the proceeding; (b) A statement of the matters of fact or law showing that FHFA is entitled to relief; (c) A proposed order or prayer for an order granting the requested relief; (d) Information concerning the nature of the proceeding and pertinent procedural matters, including: the requirement that the hearing shall be held in the District of Columbia; the presiding officer will set the date and location for an evidentiary hearing in a scheduling order to be issued not less than 30 days or more than 60 days after service of the notice of charges; contact information for FHFA enforcement counsel and the presiding officer, if known; submission information for filings and appearances, the time within which to request a hearing, and citation to FHFA Rules of Practice and Procedure; and (e) Information concerning proper filing of the answer, including the time within which to file the answer as required by law or regulation, a statement that the answer shall be filed with the presiding officer or with FHFA as specified therein, and the address for filing the answer (and request for a hearing, if applicable). § 1209.24 Answer. (a) Filing deadline. (b) Content of answer. (c) Default. § 1209.25 Amended pleadings. (a) Amendments. (b) Amendments to conform to the evidence. § 1209.26 Failure to appear. Failure of a respondent to appear in person at the hearing or by a duly authorized representative of record constitutes a waiver of respondent's right to a hearing and is deemed an admission of the facts as alleged and consent to the relief sought in the notice. Without further proceedings or notice to the respondent, the presiding officer shall file with the Director a recommended decision containing the Agency's findings and the relief sought in the notice. § 1209.27 Consolidation and severance of actions. (a) Consolidation. (b) Severance. § 1209.28 Motions. (a) In writing. (2) All written motions must state with particularity the relief sought and must be accompanied by a proposed order. (3) No oral argument may be held on written motions except as otherwise directed by the presiding officer. Written memoranda, briefs, affidavits, or other relevant material or documents may be filed in support of or in opposition to a motion. (b) Oral motions. (c) Filing of motions. in limine (d) Responses and replies. (2) The failure of a party to oppose a written motion or an oral motion made on the record is deemed as consent by that party to the entry of an order substantially in the form of the order accompanying the motion. (e) Dilatory motions. (f) Dispositive motions. § 1209.29 Discovery. (a) General rule. Limits on discovery. e.g., (2) Discovery plan. (ii) Discovery in the proceeding may commence upon the approval of the discovery plan by the presiding officer. Thereafter, the presiding officer may interpret or modify the discovery plan for good cause shown or in his or her discretion due to changed circumstances. (iii) Nothing in paragraph (a)(2) of this section shall be interpreted or deemed to require the production of documents that are privileged or not reasonably accessible because of undue burden or cost, or to require any document production otherwise inconsistent with the limitations on discovery set forth in this part. (b) Relevance and scope. (2) The scope of available discovery shall be limited in accordance with subpart C of this part. Any request for the production of documents that seeks to obtain privileged information or documents not materially relevant under paragraph (b)(1) of this section, or that is unreasonable, oppressive, excessive in scope, unduly burdensome, cumulative, or repetitive of any prior discovery requests, shall be denied or modified. (3) A request for document discovery is unreasonable, oppressive, excessive in scope, or unduly burdensome—and shall be denied or modified—if, among other things, the request: (i) Fails to specify justifiable limitations on the relevant subject matter, time period covered, search parameters, or the geographic location(s) or data repositories to be searched; (ii) Fails to identify documents with sufficient specificity; (iii) Seeks material that is duplicative, cumulative, or obtainable from another source that is more accessible, cost-effective, or less burdensome; (iv) Calls for the production of documents to be delivered to the requesting party or his or her designee and fails to provide a written agreement by the requestor to pay in advance for the costs of production in accordance with § 1209.30, or otherwise fails to take into account costs associated with processing electronically stored information or any cost-sharing agreements between the parties; (v) Fails to afford the responding party adequate time to respond; or (vi) Fails to take into account retention policies or security protocols with respect to Federal information systems. (c) Forms of discovery. (d) Privileged matter. Privileged documents are not discoverable. (ii) The parties may enter into a written agreement to permit a producing party to assert applicable privileges of a document even after its production and to request the return or destruction of privileged matter (claw back agreement). The parties shall file the claw back agreement with the presiding officer. To ensure the enforceability of the terms of any such claw back agreement, the presiding officer shall enter an order. Any party may petition the presiding officer for an order specifying claw back procedures for good cause shown. (2) No effect on examination authority. (e) Time limits. (f) Production. § 1209.30 Request for document discovery from parties. (a) General rule. (1) Limitations. (2) Discovery plan. (b) Production and costs General rule. (2) Costs. (3) Organization. (4) Photocopying charges. (5) Electronic processing. i.e., i.e., (c) Obligation to update responses. (1) The responding party learns that in some material respect the information disclosed is incomplete or incorrect, and (2) The additional or corrective information has not otherwise been made known to the other parties during the discovery process or in writing. (d) Motions to strike or limit discovery requests. (2) The party who served the request that is the subject of a motion to strike or limit may file a written response in accordance with the provisions of § 1209.28. A reply by the moving party, if any, shall be governed by § 1209.28. No other party may file a response. (e) Privilege. (f) Motions to compel production. (2) The party who asserted the privilege or failed to comply with the request may, within five days of service of a motion for the issuance of a subpoena compelling production, file a written response to the motion. No other party may file a response. (g) Ruling on motions Appropriate protective orders. (2) No stay. (3) Interlocutory review by the Director. (h) Enforcement of document discovery subpoenas Authority. (2) United States district court jurisdiction. (3) No stay; sanctions. § 1209.31 Document discovery subpoenas to non-parties. (a) General rules Application for subpoena. (2) Service of subpoena. (3) Presiding officer's discretion. (b) Motion to quash or modify Limited appearance. (2) Objections. (3) Responses and replies. (4) No stay. (c) Enforcing document subpoenas to non-parties Application for enforcement of subpoena. (2) No stay. (3) Sanctions. § 1209.32 Deposition of witness unavailable for hearing. (a) General rules. duces tecum (i) The witness will be unable to attend or may be prevented from attending the testimonial phase of the hearing because of age, sickness, or infirmity, or will be otherwise unavailable; (ii) The subpoenaing party did not cause or contribute to the unavailability of the witness for the hearing; (iii) The witness has personal knowledge and the testimony is reasonably expected to be materially relevant to claims, defenses, or matters determined to be at issue in the proceeding; and (iv) Taking the deposition will not result in any undue burden to any other party and will not cause undue delay of the proceeding. (2) The application must contain a proposed deposition subpoena and a brief statement of the reasons for the issuance of the subpoena. The subpoena must name the witness whose deposition is to be taken and specify the time and place for taking the deposition. A deposition subpoena may require the witness to be deposed anywhere within the United States, or its Territories and possessions, in which that witness resides or has a regular place of employment or such other convenient place as the presiding officer shall fix. (3) Subpoenas must be issued promptly upon request, unless the presiding officer determines that the request fails to set forth a valid basis under this section for its issuance. Before making a determination that there is no valid basis for issuing the subpoena, the presiding officer shall require a written response from the party requesting the subpoena or require attendance at a conference to determine whether there is a valid basis upon which to issue the requested subpoena. (4) The party obtaining a deposition subpoena is responsible for serving it on the witness and for serving copies on all parties. Unless the presiding officer orders otherwise, no deposition under this section shall be taken on fewer than 10 days' notice to the witness and all parties. Deposition subpoenas may be served anywhere within the United States or its Territories and possessions, or on any person doing business anywhere within the United States or its Territories and possessions, or as otherwise permitted by law. (b) Objections to deposition subpoenas. (2) A statement of the basis for the motion to quash or modify a subpoena issued under this section must accompany the motion. The motion must be served on all parties. (c) Procedure upon deposition. (2) Any party may move before the presiding officer for an order compelling the witness to answer any questions the witness has refused to answer or submit any evidence that, during the deposition, the witness has refused to submit. (3) The deposition transcript must be subscribed by the witness, unless the parties and the witness, by stipulation, have waived the signing, or the witness is ill, cannot be found, or has refused to sign. If the deposition is not subscribed by the witness, the court reporter taking the deposition shall certify that the transcript is a true and complete transcript of the deposition. (d) Enforcing subpoenas. § 1209.33 Interlocutory review. (a) General rule. (b) Scope of review. (1) The ruling involves a controlling question of law or policy as to which substantial grounds exist for a difference of opinion; (2) Immediate review of the ruling may materially advance the ultimate termination of the proceeding; (3) Subsequent modification of the ruling at the conclusion of the proceeding would be an inadequate remedy; or (4) Subsequent modification of the ruling would cause unusual delay or expense. (c) Procedure. (d) Suspension of proceeding. § 1209.34 Summary disposition. (a) In general. (1) There is no genuine issue as to any material fact; and (2) The movant is entitled to a decision in its favor as a matter of law. (b) Filing of motions and responses. (2) A motion for summary disposition must be accompanied by a statement of material facts as to which the movant contends there is no genuine issue. Such motion must be supported by documentary evidence, which may take the form of admissions in pleadings, stipulations, depositions, investigatory depositions, transcripts, affidavits, and any other evidentiary materials that the movant contends support its position. The motion must also be accompanied by a brief containing the points and authorities in support of the contention of the movant. Any party opposing a motion for summary disposition must file a statement setting forth those material facts as to which the party contends a genuine dispute exists. Such opposition must be supported by evidence of the same type as that submitted with the motion for summary disposition and a brief containing the points and authorities in support of the contention that summary disposition would be inappropriate. (c) Hearing on motion. (d) Decision on motion. § 1209.35 Partial summary disposition. If the presiding officer determines that a party is entitled to summary disposition as to certain claims only, he shall defer submitting a recommended decision to the Director as to those claims. A hearing on the remaining issues must be ordered. Those claims for which the presiding officer has determined that summary disposition is warranted will be addressed in the recommended decision filed at the conclusion of the hearing. § 1209.36 Scheduling and pre-hearing conferences. (a) Scheduling conference. pro se, (b) Pre-hearing conferences. (1) Simplification and clarification of the issues; (2) Stipulations, admissions of fact and the contents, authenticity and admissibility into evidence of documents; (3) Matters of which official notice may be taken; (4) Limitation of the number of witnesses; (5) Summary disposition of any or all issues; (6) Resolution of discovery issues or disputes; (7) Amendments to pleadings; and (8) Such other matters as may aid in the orderly disposition of the proceeding. (c) Transcript. (d) Scheduling or pre-hearing orders. § 1209.37 Pre-hearing submissions. (a) General. (1) Pre-hearing statement; (2) Final list of witnesses to be called to testify at the hearing, including name and address of each witness, and a short summary of the expected testimony of each witness; (3) List of the exhibits to be introduced at the hearing along with a copy of each exhibit; and (4) Stipulations of fact, if any. (b) Effect of failure to comply. § 1209.38 Hearing subpoenas. (a) Issuance. duces tecum (2) A party may apply for a hearing subpoena at any time before the commencement of or during a hearing. During a hearing, a party may make an application for a subpoena orally on the record before the presiding officer. (3) The presiding officer shall promptly issue any hearing subpoena applied for under this section; except that, if the presiding officer determines that the application does not set forth a valid basis for the issuance of the subpoena, or that any of its terms are unreasonable, oppressive, excessive in scope, or unduly burdensome, he may refuse to issue the subpoena or may issue the subpoena in a modified form upon any conditions consistent with subpart C of this part. Upon issuance by the presiding officer, the party making the application shall serve the subpoena on the person named in the subpoena and on each party. (b) Motion to quash or modify. (2) Any motion to quash or modify a hearing subpoena must be filed prior to the time specified in the subpoena for compliance, but no more than 10 days after the date of service of the subpoena upon the movant. (c) Enforcing subpoenas. §§ 1209.39-1209.49 [Reserved] § 1209.50 Conduct of hearings. (a) General rules. Conduct. (2) Order of hearing. (3) Examination of witnesses. (4) Stipulations. (b) Transcript. § 1209.51 Evidence. (a) Admissibility. et seq. (2) Evidence that would be admissible under the Federal Rules of Evidence is admissible in a proceeding conducted pursuant to subpart C of this part. (3) Evidence that would be inadmissible under the Federal Rules of Evidence may not be deemed or ruled to be inadmissible in a proceeding conducted pursuant to subpart C of this part if such evidence is relevant, material, probative and reliable, and not unduly repetitive. (b) Official notice. (2) All matters officially noticed by the presiding officer or the Director shall appear on the record. (3) If official notice is requested of any material fact, the parties, upon timely request, shall be afforded an opportunity to object. (c) Documents. (2) Subject to the requirements of paragraph (a)(1) of this section, any document, including a report of examination, oversight activity, inspection, or visitation prepared by FHFA or by another Federal or State financial institution's regulatory agency, is admissible either with or without a sponsoring witness. (3) Witnesses may use existing or newly created charts, exhibits, calendars, calculations, outlines, or other graphic material to summarize, illustrate, or simplify the presentation of testimony. Such materials may, subject to the presiding officer's discretion, be used with or without being admitted into evidence. (d) Objections. (2) When an objection to a question or line of questioning is sustained, the examining representative of record may make a specific proffer on the record of what he or she expected to prove by the expected testimony of the witness. The proffer may be by representation of the representative or by direct interrogation of the witness. (3) The presiding officer shall retain rejected exhibits, adequately marked for identification, for the record and transmit such exhibits to the Director. (4) Failure to object to admission of evidence or to any ruling constitutes a waiver of the objection. (e) Stipulations. (f) Depositions of unavailable witnesses. (2) Such deposition transcript is admissible to the same extent that testimony would have been admissible had that person testified at the hearing, provided that if a witness refused to answer proper questions during the deposition the presiding officer may, on that basis, limit the admissibility of the deposition in any manner that justice requires. (3) Only those portions of a deposition or related exhibits received in evidence at the hearing in accordance with this section shall constitute a part of the record. § 1209.52 Post-hearing filings. (a) Proposed findings and conclusions and supporting briefs. (2) Proposed findings and conclusions must be supported by citation to any relevant authorities and by page and line references to any relevant portions of the record. A post-hearing brief may be filed in support of proposed findings and conclusions, either as part of the same document or in a separate document. (3) A party is deemed to have waived any issue not raised in proposed findings or conclusions timely filed by that party. (b) Reply briefs. (c) Simultaneous filing required. § 1209.53 Recommended decision and filing of record. (a) Filing of recommended decision and record. (b) Filing of index. § 1209.54 Exceptions to recommended decision. (a) Filing exceptions. (b) Effect of failure to file or raise exceptions. (2) No exception need be considered by the Director if the party taking exception had an opportunity to raise the same objection, issue, or argument before the presiding officer and failed to do so. (c) Contents. (2) All exceptions and briefs in support of exceptions must set forth page or paragraph references to the specific parts of the presiding officer's recommendations to which exception is taken, the page or paragraph references to those portions of the record relied upon to support each exception, and the legal authority relied upon to support each exception. Exceptions and briefs in support shall not exceed a total of 30 pages, except by leave of the Director on motion. (3) One reply brief may be submitted by each party opposing the exceptions within 10 days of service of exceptions and briefs in support of exceptions. Reply briefs shall not exceed 15 pages, except by leave of the Director on motion. § 1209.55 Review by Director. (a) Notice of submission to the Director. (b) Oral argument before the Director. (c) Director's final decision and order. (2) The Director shall render a final decision and issue an appropriate order within 90 days after notification to the parties that the case has been submitted for final decision, unless the Director orders that the action or any aspect thereof be remanded to the presiding officer for further proceedings. Copies of the final decision including findings of fact and an appropriate order of the Director shall be served upon each party to the proceeding and as otherwise required by statute. (3) The Director may modify, terminate, or set aside an order in accordance with section 1373(b)(2) of the Safety and Soundness Act (12 U.S.C. 4633(b)(2)). § 1209.56 Exhaustion of administrative remedies. To exhaust administrative remedies as to any issue on which a party disagrees with the presiding officer's recommendations, a party must file exceptions with the Director under § 1209.54 of this part. A party must exhaust administrative remedies as a precondition to seeking judicial review of any final decision and order issued under this part. § 1209.57 Judicial review; no automatic stay. (a) Judicial review. (b) No automatic stay. §§ 1209.58-1209.69 [Reserved] Subpart D—Parties and Representational Practice Before the Federal Housing Finance Agency; Standards of Conduct § 1209.70 Scope. Subpart D of this part contains rules governing practice by parties or their representatives before FHFA. This subpart addresses the imposition of sanctions by the presiding officer or the Director against parties or their representatives in an adjudicatory proceeding under this part. This subpart also covers other disciplinary sanctions—censure, suspension, or disbarment—against individuals who appear before FHFA in a representational capacity either in an adjudicatory proceeding under this part or in any other matters connected with presentations to FHFA relating to a client's or other principal's rights, privileges, or liabilities. This representation includes, but is not limited to, the practice of attorneys and accountants. Employees of FHFA are not subject to disciplinary proceedings under this subpart. § 1209.71 Definitions. Practice before FHFA § 1209.72 Appearance and practice in adjudicatory proceedings. (a) Appearance before FHFA or a presiding officer By attorneys. (2) By non-attorneys. pro se. (b) Notice of appearance. pro se § 1209.73 Conflicts of interest. (a) Conflict of interest in representation. (b) Certification and waiver. (1) That the representative has personally and fully discussed the possibility of conflicts of interest with each affected party and non-party; and (2) That each affected party and non-party waives any right it might otherwise have had to assert any known conflicts of interest or to assert any non-material conflicts of interest during the course of the proceeding. § 1209.74 Sanctions. (a) General rule. (1) Constitutes contemptuous conduct, which includes dilatory, obstructionist, egregious, contumacious, unethical, or other improper conduct at any phase of any proceeding, hearing, or appearance before a presiding officer or the Director; (2) Has caused some other party material and substantive injury, including, but not limited to, incurring expenses including attorney's fees or experiencing prejudicial delay; (3) Is a clear and unexcused violation of an applicable statute, regulation, or order; or (4) Has delayed the proceeding unduly. (b) Sanctions. (1) Issuing an order against a party; (2) Rejecting or striking any testimony or documentary evidence offered, or other papers filed, by the party; (3) Precluding the party from contesting specific issues or findings; (4) Precluding the party from offering certain evidence or from challenging or contesting certain evidence offered by another party; (5) Precluding the party from making a late filing or conditioning a late filing on any terms that may be just; or (6) Assessing reasonable expenses, including attorney's fees, incurred by any other party as a result of the improper action or failure to act. (c) Procedure for imposition of sanctions. (2) Except as provided in paragraph (d) of this section, no sanction authorized by this section, other than refusing to accept late papers, shall be imposed without prior notice to all parties and an opportunity for any representative or party against whom sanctions may be imposed to be heard. The presiding officer shall determine and direct the appropriate notice and form for such opportunity to be heard. The opportunity to be heard may be limited to an opportunity to respond verbally immediately after the act or inaction in question is noted by the presiding officer. (3) For purposes of interlocutory review, motions for the imposition of sanctions by any party and the imposition of sanctions shall be treated the same as motions for any other ruling by the presiding officer. (4) Nothing in this section shall be read to preclude the presiding officer or the Director from taking any other action or imposing any other restriction or sanction authorized by any applicable statute or regulation. (d) Sanctions for contemptuous conduct. § 1209.75 Censure, suspension, disbarment, and reinstatement. (a) Discretionary censure, suspension, and disbarment. (i) Not to possess the requisite qualifications or competence to represent others; (ii) To be seriously lacking in character or integrity or to have engaged in material unethical or improper professional conduct; (iii) To have caused unfair and material injury or prejudice to another party, such as prejudicial delay or unnecessary expenses including attorney's fees; (iv) To have engaged in, or aided and abetted, a material and knowing violation of the Safety and Soundness Act, the Federal Home Loan Mortgage Corporation Act, the Federal National Mortgage Association Charter Act, or the rules or regulations issued under those statutes, or any other applicable law or regulation; (v) To have engaged in contemptuous conduct before FHFA; (vi) With intent to defraud in any manner, to have willfully and knowingly deceived, misled, or threatened any client or prospective client; or (vii) Within the last 10 years, to have been convicted of an offense involving moral turpitude, dishonesty, or breach of trust, if the conviction has not been reversed on appeal. A conviction within the meaning of this paragraph shall be deemed to have occurred when the convicting court enters its judgment or order, regardless of whether an appeal is pending or could be taken and includes a judgment or an order on a plea of nolo contendere (2) Suspension or revocation on the grounds set forth in paragraphs (a)(1)(ii) through (vii) of this section shall only be ordered upon a further finding that the individual's conduct or character was sufficiently egregious as to justify suspension or revocation. Suspension or disbarment under this paragraph shall continue until the applicant has been reinstated by the Director for good cause shown or until, in the case of a suspension, the suspension period has expired. (3) If the final order against the respondent is for censure, the individual may be permitted to practice before FHFA, but such individual's future representations may be subject to conditions designed to promote high standards of conduct. If a written letter of censure is issued, a copy will be maintained in FHFA's files. (b) Mandatory suspension and disbarment. (2) A suspension or disbarment from practice before FHFA under paragraph (b)(1) of this section shall continue until the person suspended or disbarred is reinstated under paragraph (d)(2) of this section. (c) Notices to be filed. (2) Any individual appearing or practicing before FHFA who is or within the last 10 years has been convicted of a felony or of a misdemeanor that resulted in a sentence of prison term or in a fine or restitution order totaling more than $5,000 promptly shall file a notice with the Director. The notice shall include a copy of the order imposing the sentence or fine, together with any related opinion or statement of the court involved. (d) Reinstatement. (2) An application for reinstatement for good cause by any person suspended or disbarred under paragraph (b)(1) of this section may be filed at any time, but not less than one year after the applicant's most recent application. An applicant for reinstatement for good cause hereunder may, in the Director's sole discretion, be afforded a hearing. If, however, all the grounds for suspension or disbarment under paragraph (b)(1) of this section have been removed by a reversal of the order of suspension or disbarment or by termination of the underlying suspension or disbarment, any person suspended or disbarred under paragraph (b)(1) of this section may apply immediately for reinstatement and shall be reinstated by FHFA upon written application notifying FHFA that the grounds have been removed. (e) Conferences. General rule. (2) Resignation or voluntary suspension. (f) Hearings under this section. §§ 1209.76-1209.79 [Reserved] Subpart E—Civil Money Penalty Inflation Adjustments § 1209.80 Inflation adjustments. The maximum amount of each civil money penalty within FHFA's jurisdiction, as set by the Safety and Soundness Act and thereafter adjusted in accordance with the Inflation Adjustment Act, is as follows: Table 1 to § 1209.80 U.S. Code citation Description Catch-up 12 U.S.C. 4636(b)(1) First Tier $14,575 12 U.S.C. 4636(b)(2) Second Tier 72,876 12 U.S.C. 4636(b)(4) Third Tier (Regulated Entity or Entity-Affiliated party) 2,915,057 12 U.S.C. 4585(b)(1) Maximum penalty for failure described in section 1345(a)(1), for each day that the failure occurs 145,754 12 U.S.C. 4585(b)(2) Maximum penalty for failure described in section 1345(a)(2), (3), or (4), for each day that the failure occurs 72,876 [90 FR 59965, Dec. 23, 2025] § 1209.81 Applicability. (a) Applicability to penalties under 12 U.S.C. 4636. (b) Applicability to penalties under 12 U.S.C. 4585. [90 FR 59965, Dec. 23, 2025] §§ 1209.82-1209.99 [Reserved] Subpart F—Suspension or Removal of an Entity-Affiliated Party Charged With Felony § 1209.100 Scope. Subpart F of this part applies to informal hearings afforded to any entity-affiliated party who has been suspended, removed, or prohibited from further participation in the business affairs of a regulated entity by a notice or order issued by the Director under section 1377(h) of the Safety and Soundness Act (12 U.S.C. 4636a(h)). § 1209.101 Suspension, removal, or prohibition. (a) Notice of suspension or prohibition. (2) In accordance with section 1377(h)(1) of the Safety and Soundness Act (12 U.S.C. 4636a(h)(1)), the notice of suspension or prohibition is effective upon service. A copy of such notice will be served on the relevant regulated entity. The notice will state the basis for the suspension and the right of the party to request an informal hearing as provided in § 1209.102. The suspension or prohibition is to remain in effect until the information, indictment, or complaint is finally disposed of, or until terminated by the Director, or otherwise as provided in paragraph (c) of this section. (b) Order of removal or prohibition. (c) Effective period. (d) Effect of acquittal. (e) Preservation of authority. § 1209.102 Hearing on removal or suspension. (a) Hearing requests Deadline. (i) Overnight U.S. Postal Service delivery or delivery by a reliable commercial delivery service for same day or overnight delivery to the address stated above; or (ii) First class, registered, or certified mail via the U.S. Postal Service. (2) Waiver of appearance. (b) Form and timing of hearing. Informal hearing. (2) Setting of the hearing. (3) Oral testimony. (c) Conduct of the hearing Hearing officer. (2) Submissions. (3) Procedures. Fact finding authority of the hearing officer. (ii) Statements to an officer. (iii) Oral testimony. (iv) Written materials. (v) Relief. (vi) Ultimate question. (4) Record. [76 FR 53607, Aug. 26, 2011,, as amended at 80 FR 80233, Dec. 24, 2015] § 1209.103 Recommended and final decisions. (a) Recommended decision Written recommended decision of the hearing officer. (2) Five-day comment period. (3) Recommended decision to be transmitted to the Director. (b) Decision of the Director. (c) Effect of notice or order. (d) Reconsideration.