Misalignment.

CFR · 2024-01-01 · US · Title 12

(a) The Enterprises must report any misalignment to FHFA. (b) The Enterprises must submit, in a timely manner, a written report to FHFA on any material misalignment describing, at a minimum, the likely cause of material misalignment and the Enterprises' plan to address the material misalignment. (c) FHFA will (1) In adjusting the percentages, FHFA will consider: (i) The prevailing level and volatility of interest rates; (ii) The level of credit risk embedded in the Enterprises' TBA-eligible MBS; and (iii) Such other factors as FHFA may, in consultation with the Enterprises, determine to be appropriate to promote market confidence in the alignment of cash flows to TBA-eligible MBS investors and to foster the efficiency and liquidity of the secondary mortgage market. (2) FHFA will publicly announce any temporary adjustment to the percentages in the definition of align, misalignment, and material misalignment in a timely manner. (3) If adjusted percentages remain in effect for six months or more, FHFA will amend this part's definitions by (4) Temporarily adjusted percentages will remain in effect until six months after the date on which FHFA announced the temporary adjustment unless within six months of that date— (i) FHFA announces a reversion to the previously prevailing percentages; or (ii) FHFA initiates the notice and comment process, in which case the temporary percentages will remain in effect until the conclusion of that process. (d) FHFA will (1) In adjusting those defi

official document · source cfr-2024 · id 12:§ 1248.5