[Congressional Bills 110th Congress]
[From the U.S. Government Publishing Office]
[S. 1805 Introduced in Senate (IS)]







110th CONGRESS
  1st Session
                                S. 1805

   To amend the National Housing Act to increase the mortgage amount 
    limits applicable to housing insured by FHA mortgage insurance.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             July 17, 2007

  Mr. Schumer introduced the following bill; which was read twice and 
    referred to the Committee on Banking, Housing, and Urban Affairs

_______________________________________________________________________

                                 A BILL


 
   To amend the National Housing Act to increase the mortgage amount 
    limits applicable to housing insured by FHA mortgage insurance.

    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 ``FHA Loan Limit Adjustment Act of 
2007''.

SEC. 2. MAXIMUM PRINCIPAL LOAN OBLIGATION.

    Paragraph (2) of section 203(b) of the National Housing Act (12 
U.S.C. 1709(b)(2)) is amended--
            (1) by striking subparagraphs (A) and (B) and inserting the 
        following new subparagraphs:
                    ``(A) not to exceed the lesser of--
                            ``(i) in the case of a 1-family residence, 
                        the median 1-family house price in the area, as 
                        determined by the Secretary; and in the case of 
                        a 2-, 3-, or 4-family residence, the percentage 
                        of such median price that bears the same ratio 
                        to such median price as the dollar amount 
                        limitation in effect under section 305(a)(2) of 
                        the Federal Home Loan Mortgage Corporation Act 
                        (12 U.S.C. 1454(a)(2)) for a 2-, 3-, or 4-
                        family residence, respectively, bears to the 
                        dollar amount limitation in effect under such 
                        section for a 1-family residence; or
                            ``(ii) the dollar amount limitation 
                        determined under such section 305(a)(2) for a 
                        residence of the applicable size;
                except that the dollar amount limitation in effect for 
                any area under this subparagraph may not be less than 
                the greater of (I) the dollar amount limitation in 
                effect under this section for the area on October 21, 
                1998, or (II) 65 percent of the dollar limitation 
                determined under such section 305(a)(2) for a residence 
                of the applicable size; and
                    ``(B) not to exceed the appraised value of the 
                property, plus any initial service charges, appraisal, 
                inspection, and other fees in connection with the 
                mortgage as approved by the Secretary.'';
            (2) in the matter after and below subparagraph (B), by 
        striking the second sentence (relating to a definition of 
        ``average closing cost'') and all that follows through ``title 
        38, United States Code''; and
            (3) by striking the last undesignated paragraph (relating 
        to counseling with respect to the responsibilities and 
        financial management involved in homeownership).

SEC. 3. MULTIFAMILY HOUSING MORTGAGE LIMITS IN HIGH COST AREAS.

    The National Housing Act is amended--
            (1) in sections 207(c)(3), 213(b)(2)(B)(i), 
        221(d)(3)(ii)(II), 221(d)(4)(ii)(II), 231(c)(2)(B), and 
        234(e)(3)(B) (12 U.S.C. 1713(c)(3), 1715e(b)(2)(B)(i), 
        1715l(d)(3)(ii)(II), 1715l(d)(4)(ii)(II), 1715v(c)(2)(B), and 
        1715y(e)(3)(B))--
                    (A) by striking ``140 percent'' each place such 
                term appears and inserting ``170 percent''; and
                    (B) by striking ``170 percent in high cost areas'' 
                each place such term appears and inserting ``215 
                percent in high cost areas''; and
            (2) in section 220(d)(3)(B)(iii)(III) (12 U.S.C. 
        1715k(d)(3)(B)(iii)(III)) by striking ``206A'' and all that 
        follows through ``project-by-project basis'' and inserting the 
        following: ``206A of this Act) by not to exceed 170 percent in 
        any geographical area where the Secretary finds that cost 
        levels so require and by not to exceed 170 percent, or 215 
        percent in high cost areas, where the Secretary determines it 
        necessary on a project-by-project basis''.
                                 <all>