{"data":{"id":"us/12-cfr-1253.2","jurisdiction":"us","citation":"12 CFR 1253.2","heading":"Definitions.","body":"For purposes of this part:\nActivity means a business line, business practice, offering, or service, including a guarantee, a financial instrument, consulting or marketing, that the Enterprise provides to the market either on a standalone basis or as part of a business line, business practice, offering, or service.\nAuthorizing statute means the Federal National Mortgage Association Charter Act and the Federal Home Loan Mortgage Corporation Act, as applicable.\nCredit risk is the potential that a borrower or counterparty will fail to meet its obligations in accordance with agreed terms. Credit risk includes the decline in measured quality of a credit exposure that might result in increased capital costs, provisioning expenses, or a reduction in economic return.\nDays means calendar days.\nMarket risk means the risk that the market value, or estimated fair value if the market value is not available, of an Enterprise's portfolio will decline as a result of changes in interest rates, foreign exchange rates, or equity or commodity prices.\nNew activity has the meaning provided in § 1253.3.\nNew product has the meaning provided in § 1253.4.\nOperational risk means the risk of loss resulting from inadequate or failed internal processes, people, or systems, or from external events, including all direct and indirect economic losses related to legal liability. Operational risk includes reputational risk, which is the potential for substantial negative publicity regarding an Enterprise's business practices.\nPilot means an activity that has a limited term and scope for purposes of evaluating the viability of the activity. A pilot may also be referred to as a testing initiative, test and learn, temporary authorization, or by other names.","path":["Title 12—Banks and Banking","CHAPTER XII—FEDERAL HOUSING FINANCE AGENCY","SUBCHAPTER C—ENTERPRISES","PART 1253—PRIOR APPROVAL FOR ENTERPRISE PRODUCTS"],"source_url":"https://www.ecfr.gov/api/versioner/v1/full/2026-08-25/title-12.xml","current_through":"2026-08-25","vintage":"","retrieved_at":"2026-08-27T02:24:16Z","sha256":"a225a0f1825c493af98dec3cda4898f70a74793a9b97dfe017562178c4152844","source_id":"us-cfr","stale":true,"prev":"us/12-cfr-1253.1","next":"us/12-cfr-1253.3"},"notice":"GroundRules: Original legal text. Not legal advice."}