II 110th CONGRESS 1st Session S. 1805 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.

1.

Short title

This Act may be cited as the FHA Loan Limit Adjustment Act of 2007.

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).

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.