[Congressional Bills 110th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5153 Introduced in House (IH)]







110th CONGRESS
  2d Session
                                H. R. 5153

   To increase temporarily the conforming loan limits of the Federal 
   National Mortgage Association and the Federal Home Loan Mortgage 
 Corporation in certain areas, enhance mortgage market liquidity, and 
                          for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                            January 29, 2008

Mr. Kanjorski introduced the following bill; which was referred to the 
                    Committee on Financial Services

_______________________________________________________________________

                                 A BILL


 
   To increase temporarily the conforming loan limits of the Federal 
   National Mortgage Association and the Federal Home Loan Mortgage 
 Corporation in certain areas, enhance mortgage market liquidity, and 
                          for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Conforming Loan Limit Temporary 
Adjustment Act of 2008''.

SEC. 2. TEMPORARY CONFORMING LOAN LIMIT INCREASE FOR FANNIE MAE AND 
              FREDDIE MAC.

    (a) Increase of High Cost Areas Limits for Housing GSEs.--For 
mortgages originated during the period beginning on July 1, 2007, and 
ending at the end of December 31, 2008:
            (1) Fannie mae.--With respect to the Federal National 
        Mortgage Association, notwithstanding section 302(b)(2) of the 
        Federal National Mortgage Association Charter Act (12 U.S.C. 
        1717(b)(2)), the limitation on the maximum original principal 
        obligation of a mortgage that may be purchased by the 
        Association shall be the higher of--
                    (A) the limitation for 2008 determined under such 
                section 302(b)(2) for a residence of the applicable 
                size; or
                    (B) 125 percent of the area median price for a 
                residence of the applicable size, but in no case to 
                exceed 175 percent of the limitation for 2008 
                determined under such section 302(b)(2) for a residence 
                of the applicable size.
            (2) Freddie mac.--With respect to the Federal Home Loan 
        Mortgage Corporation, notwithstanding section 305(a)(2) of the 
        Federal Home Loan Mortgage Corporation Act (12 U.S.C. 
        1454(a)(2)), the limitation on the maximum original principal 
        obligation of a mortgage that may be purchased by the 
        Corporation shall be the higher of--
                    (A) the limitation determined for 2008 under such 
                section 305(a)(2) for a residence of the applicable 
                size; or
                    (B) 125 percent of the area median price for a 
                residence of the applicable size, but in no case to 
                exceed 175 percent of the limitation determined for 
                2008 under such section 305(a)(2) for a residence of 
                the applicable size.
    (b) Determination of Limits.--The areas and area median prices used 
for purposes of the determinations under subsection (a) shall be the 
areas and area median prices developed by the Secretary of Housing and 
Urban Development in accordance with subsection (f).
    (c) Rule of Construction.--A mortgage originated during the period 
referred to in subsection (a) that is eligible for purchase by the 
Federal National Mortgage Association or the Federal Home Loan Mortgage 
Corporation pursuant to this section shall be eligible for such 
purchase for the duration of the term of the mortgage, notwithstanding 
that such purchase occurs after the expiration of such period.
    (d) Effect on Housing Goals.--Notwithstanding any other provision 
of law, mortgages purchased in accordance with the increased maximum 
original principal obligation limitations determined pursuant to this 
section shall not be considered in determining performance with respect 
to any of the housing goals established under section 1332, 1333, or 
1334 of the Housing and Community Development Act of 1992 (12 U.S.C. 
4562-4), and shall not be considered in determining compliance with 
such goals pursuant to section 1336 of such Act (12 U.S.C. 4566) and 
regulations, orders, or guidelines issued thereunder.
    (e) Sense of Congress.--It is the sense of the Congress that the 
securitization of mortgages by the Federal National Mortgage 
Association and the Federal Home Loan Mortgage Corporation plays an 
important role in providing liquidity to the United States housing 
markets. Therefore, the Congress encourages the Federal National 
Mortgage Association and the Federal Home Loan Mortgage Corporation to 
securitize mortgages acquired under the increased conforming loan 
limits established in this section, to the extent that such 
securitizations can be effected in a timely and efficient manner that 
does not impose additional costs for mortgages originated, purchased, 
or securitized under the existing limits or interfere with the goal of 
adding liquidity to the market.
    (f) Publication of Area Median Prices and Loan Limits.--The 
Secretary of Housing and Urban Development shall publish the median 
house prices and mortgage principal obligation limits, as revised 
pursuant to this section, for all areas as soon as practicable, but in 
no case more than 30 days after the date of the enactment of this Act. 
With respect to existing areas for which the Secretary has not 
established area median prices before such date of enactment, the 
Secretary may rely on existing commercial data in determining area 
median prices and calculating such revised principal obligation limits.
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