Title 12—Banks and Banking--Volume 1
PART 1212—POST-EMPLOYMENT RESTRICTION FOR SENIOR EXAMINERS
§ 1212.1   Purpose and scope.
This subpart sets forth a one-year post-employment restriction applicable to senior examiners of the Federal Housing Finance Agency (FHFA). This restriction is in addition to the post-employment restriction applicable to employees of FHFA under 12 U.S.C. 4523.
§ 1212.2   Definitions.
For purposes of subpart B of this part, the term:
Consultant means a person who works directly on matters for, or on behalf of, a regulated entity or the Office of Finance.
Director means the Director of FHFA or his or her designee.
Employee means an officer or employee of FHFA, including a special Government employee.
Federal Home Loan Bank or Bank means a Bank established under the Federal Home Loan Bank Act; the term “Federal Home Loan Banks” means, collectively, all the Federal Home Loan Banks.
Office of Finance means the Office of Finance of the Federal Home Loan Bank System, or any successor thereto.
Regulated entity means the Federal National Mortgage Association and any affiliate thereof, the Federal Home Loan Mortgage Corporation and any affiliate thereof, any Federal Home Loan Bank; the term “regulated entities” means, collectively, the Federal National Mortgage Association and any affiliate thereof, the Federal Home Loan Mortgage Corporation and any affiliate thereof, and the Federal Home Loan Banks.
Safety and Soundness Act means the Federal Housing Enterprises Financial Safety and Soundness Act of 1992, as amended by the Federal Housing Finance Regulatory Reform Act of 2008, Division A of the Housing and Economic Recovery Act of 2008, Public Law No. 110-289, 122 Stat. 2654 (2008).
Senior examiner means an employee of FHFA who has been:
(1) Authorized by FHFA to conduct examinations or inspections on behalf of FHFA;
(2) Assigned continuing, broad and lead responsibility for examining a regulated entity or the Office of Finance; and
(3) Assigned responsibilities for examining, inspecting and supervising the regulated entity or the Office of Finance that—
(i) Represents a substantial portion of the employee's assigned responsibilities; and
(ii) Requires the employee to interact routinely with officers or employees of the regulated entity or the Office of Finance.
§ 1212.3   Post-employment restriction for senior examiners.
(a) Prohibition. An employee of FHFA who serves as the senior examiner of a regulated entity or the Office of Finance for two or more months during the last 12 months of his or her employment with FHFA may not, within one year after leaving the employment of FHFA, knowingly accept compensation as an employee, officer, director, or consultant from a regulated entity or the Office of Finance unless the Director grants a waiver pursuant to § 1212.4.
(b) Effective date. The post-employment restriction in paragraph (a) of this section shall not apply to any officer or employee of FHFA or any former officer or employee of FHFA who ceased to be an officer or employee of FHFA before November 4, 2009.
§ 1212.4   Waiver.
At the written request of a senior examiner or former senior examiner, the Director may waive the post-employment restriction in § 1212.3 if he or she certifies, in writing, and on a case-by-case basis, that granting a waiver of such restriction does not affect the integrity of the supervisory program of FHFA.
§ 1212.5   Penalties.
(a) General. A senior examiner who, after leaving the employment of FHFA, violates the restriction set forth in § 1212.3 shall be subject to one or both of the following penalties—
(1) An order:
(i) Removing the individual from office at the regulated entity or the Office of Finance or prohibiting the individual from further participation in the affairs of the relevant regulated entity or the Office of Finance for a period of up to five years; and
(ii) Prohibiting the individual from participating in the affairs of any regulated entity or the Office of Finance for a period of up to five years; and/or
(2) A civil money penalty of not more than $250,000.
(b) Other penalties. The penalties set forth in paragraph (a) of this section are not exclusive, and a senior examiner who violates the restrictions in § 1212.3 also may be subject to other administrative, civil, or criminal remedies or penalties as provided in law.
(c) Procedural rights. The procedures applicable to actions under paragraph (a) of this section are those provided in the Safety and Soundness Act under section 1376, in connection with the imposition of a civil money penalty; under section 1377, in connection with a removal and prohibition order (12 U.S.C. 4636 and 4636a, respectively); and under any regulations issued by FHFA implementing such procedures.