PART 1225—MINIMUM CAPITAL—TEMPORARY INCREASE Authority: 12 U.S.C. 4513, 4526, and 4612. Source: 76 FR 11674, Mar. 3, 2011, unless otherwise noted. § 1225.1 Purpose. FHFA is responsible for ensuring the safe and sound operation of regulated entities. In furtherance of that responsibility, this part sets forth standards and procedures FHFA will employ to determine whether to require or rescind a temporary increase in the minimum capital levels for a regulated entity or entities pursuant to 12 U.S.C. 4612(d). § 1225.2 Definitions. For purposes of this part, the term: Minimum capital level Rescission [76 FR 11674, Mar. 3, 2011, as amended at 78 FR 2323, Jan. 11, 2013; 85 FR 82198, Dec. 17, 2020] § 1225.3 Procedures. (a) Information Information to the regulated entity or entities. (2) Information to the Government. (b) Comments. (c) Communication. (d) Written plan. (e) Time frame for review of temporary increase for purpose of rescission. (2) A regulated entity or regulated entities may at any time request in writing such review by the Director. § 1225.4 Standards and factors. (a) Standard for imposing a temporary increase. (1) Current or anticipated declines in the value of assets held by a regulated entity; the amounts of mortgage-backed securities issued or guaranteed by the regulated entity; and, its ability to access liquidity and funding; (2) Credit (including counterparty), market, operational and other risks facing a regulated entity, especially where an increase in risks is foreseeable and consequential; (3) Current or projected declines in the capital held by a regulated entity; (4) A regulated entity's material non-compliance with regulations, written orders, or agreements; (5) Housing finance market conditions; (6) Level of reserves or retained earnings; (7) Initiatives, operations, products, or practices that entail heightened risk; (8) With respect to a Bank, the ratio of the market value of its equity to par value of its capital stock where the market value of equity is the value calculated and reported by the Bank as “market value of total capital” under 12 CFR 932.5(a)(1)(ii)(A); or (9) Other conditions as detailed by the Director in the notice provided under § 1225.3. (b) Standard for rescission of a temporary increase. (1) Changes to the circumstances or facts that led to the imposition of a temporary increase in the minimum capital levels; (2) The meeting of targets set for a regulated entity in advance of any capital or capital-related plan agreed to by the Director; (3) Changed circumstances or facts based on new developments occurring since the imposition of the temporary increase in the minimum capital level, particularly where the original problems or concerns have been successfully addressed or alleviated in whole or in part; or (4) Such other standard as the Director may consider as detailed by the Director in the notice provided under § 1225.3. § 1225.5 Guidances. The Director may determine, from time to time, issue guidance to elaborate, to refine or to provide new information regarding standards or procedures contained herein.