# 12 CFR § 1242.1: Purpose; identification as a prudential standard

> Federal · Regulations · In force

URL: https://www.frixlaw.com/law-library/statutes/ecfr-12-1242.1

## Section

- **Citation:** 12 CFR § 1242.1
- **Heading:** Purpose; identification as a prudential standard
- **Jurisdiction:** Federal
- **Kind:** Regulations
- **Status:** In force
- **Text as of:** September 22, 2026
- **Source:** Publisher's official text
- **Location:** Title 12—Banks and Banking > CHAPTER XII—FEDERAL HOUSING FINANCE AGENCY > SUBCHAPTER C—ENTERPRISES > PART 1242—RESOLUTION PLANNING

## Text

(a) Purpose. The purpose of this part is to require each Enterprise to develop a plan for submission to FHFA that would assist FHFA in planning for the rapid and orderly resolution of an Enterprise using FHFA's receivership authority at 12 U.S.C. 4617, in a manner that:
(1) Minimizes disruption in the national housing finance markets by providing for the continued operation of the core business lines of an Enterprise in receivership by a newly constituted limited-life regulated entity;
(2) Preserves the value of an Enterprise's franchise and assets;
(3) Facilitates the division of assets and liabilities between the limited-life regulated entity and the receivership estate;
(4) Ensures that investors in mortgage-backed securities guaranteed by the Enterprises and in Enterprise unsecured debt bear losses in accordance with the priority of payments established in the Safety and Soundness Act while minimizing unnecessary losses and costs to these investors; and
(5) Fosters market discipline by making clear that no extraordinary government support will be available to indemnify investors against losses or fund the resolution of an Enterprise.
(b) Identification as a prudential standard; effect of identification. This part is a prudential standard pursuant to section 1313B of the Safety and Soundness Act, 12 U.S.C. 4513b, and is subject to 12 CFR part 1236. In its discretion, FHFA may deem:
(1) The determination of a deficiency in a resolution plan; or
(2) The failure to undertake actions or changes identified by FHFA in the notice provided pursuant to § 1242.7(b)(1), to be a failure to meet a standard for purposes of § 1236.4 of this chapter. In its discretion, FHFA may also deem a revised, resubmitted resolution plan to be a corrective plan for purposes of § 1236.4 of this chapter.

## Nearby sections

- [12 CFR § 1242.1 § 1242.1 Purpose; identification as a prudential standard.](https://www.frixlaw.com/law-library/statutes/ecfr-12-1242.1.md)
- [12 CFR § 1242.2 § 1242.2 Definitions.](https://www.frixlaw.com/law-library/statutes/ecfr-12-1242.2.md)
- [12 CFR § 1242.3 § 1242.3 Identification of core business lines.](https://www.frixlaw.com/law-library/statutes/ecfr-12-1242.3.md)
- [12 CFR § 1242.4 § 1242.4 Credible resolution plan required; other notices to FHFA.](https://www.frixlaw.com/law-library/statutes/ecfr-12-1242.4.md)
- [12 CFR § 1242.5 § 1242.5 Informational content of a resolution plan; required and prohibited assumptions.](https://www.frixlaw.com/law-library/statutes/ecfr-12-1242.5.md)
- [12 CFR § 1242.6 § 1242.6 Form of resolution plan; confidentiality.](https://www.frixlaw.com/law-library/statutes/ecfr-12-1242.6.md)
- [12 CFR § 1242.7 § 1242.7 Review of resolution plans; resubmission of deficient resolution plans.](https://www.frixlaw.com/law-library/statutes/ecfr-12-1242.7.md)
- [12 CFR § 1242.8 § 1242.8 No limiting effect or private right of action.](https://www.frixlaw.com/law-library/statutes/ecfr-12-1242.8.md)
- [12 CFR § 1248.1 § 1248.1 Definitions.](https://www.frixlaw.com/law-library/statutes/ecfr-12-1248.1.md)
- [12 CFR § 1248.2 § 1248.2 Purpose.](https://www.frixlaw.com/law-library/statutes/ecfr-12-1248.2.md)
- [12 CFR § 1248.3 § 1248.3 General alignment.](https://www.frixlaw.com/law-library/statutes/ecfr-12-1248.3.md)
- [12 CFR § 1248.4 § 1248.4 Enterprise consultation.](https://www.frixlaw.com/law-library/statutes/ecfr-12-1248.4.md)
- [12 CFR § 1248.5 § 1248.5 Misalignment.](https://www.frixlaw.com/law-library/statutes/ecfr-12-1248.5.md)
- [12 CFR § 1248.6 § 1248.6 Covered programs, policies, and practices.](https://www.frixlaw.com/law-library/statutes/ecfr-12-1248.6.md)

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Source: Frix Law Library, https://www.frixlaw.com/law-library/statutes/ecfr-12-1242.1. Check the current official text before relying on it. Not legal advice.