I 112th CONGRESS 1st Session H. R. 1754 IN THE HOUSE OF REPRESENTATIVES May 5, 2011 Mr. Gary G. Miller of California (for himself and Mr. Sherman) introduced the following bill; which was referred to the Committee on Financial Services A BILL To permanently increase the conforming loan limits for the Federal Home Loan Mortgage Corporation and the Federal National Mortgage Association and the FHA maximum mortgage amount limitations.

1.

Short title

This Act may be cited as the Preserving Equal Access to Mortgage Finance Programs Act.

2.

Permanent conforming loan limit increase for Freddie Mac and Fannie Mae

(a)

Freddie Mac

(1)

Increase

Paragraph (2) of section 305(a) of the Federal Home Loan Mortgage Corporation Act (12 U.S.C. 1454(a)(2)) is amended— (A)by inserting (A) after (2); (B)in the first sentence, by redesignating clauses (A) through (C) as clauses (i) through (iii), respectively; (C)in the second sentence, by striking clause (A) and inserting clause (i); and (D)in the last sentence— (i)by striking 115 percent each place such term appears and inserting 125 percent; and (ii)by striking 150 percent and inserting 175 percent. (2)

Discretionary authority to limit decreases

Paragraph (2) of section 305(a) of the Federal Home Loan Mortgage Corporation Act (12 U.S.C. 1454(a)(2)), as amended by paragraph (1), is further amended by adding at the end the following new subparagraph: (B)Notwithstanding the calculation of the limitation on the maximum original principal obligation of a mortgage that may be purchased by the Corporation for an area pursuant to the last sentence of subparagraph (A), if any recalculation of the local median home price for any area would otherwise result in a decrease in the maximum original principal limitation for any size residence in any such area, the Director of the Federal Housing Finance Agency may prevent or limit a decrease in such limitation from taking place for any such area. In taking such action, the Director shall consider such factors as market dislocations caused by a decrease in such limitation, the extent of the median home price decline, and the causes for such reduction in median home price. . (b)

Fannie Mae

(1)

Increase

Paragraph (2) of section 302(b) of the Federal National Mortgage Association Charter Act (12 U.S.C. 1717(b)(2)) is amended— (A)by inserting (A) after (2); (B)in the second sentence, by redesignating clauses (A) through (C) as clauses (i) through (iii), respectively; (C)in the third sentence, by striking clause (A) and inserting clause (i); and (D)in the last sentence— (i)by striking 115 percent each place such term appears and inserting 125 percent; and (ii)by striking 150 percent and inserting 175 percent. (2)

Discretionary authority to limit decreases

Paragraph (2) of section 302(b) of the Federal National Mortgage Association Charter Act (12 U.S.C. 1717(b)(2)), as amended by paragraph (1), is further amended by adding at the end the following new subparagraph: (B)Notwithstanding the calculation of the limitation on the maximum original principal obligation of a mortgage that may be purchased by the corporation for an area pursuant to the last sentence of subparagraph (A), if any recalculation of the local median home price for any area would otherwise result in a decrease in the maximum original principal limitation for any size residence in any such area, the Director of the Federal Housing Finance Agency may prevent or limit a decrease in such limitation from taking place for any such area.  In taking such action, the Director shall consider such factors as market dislocations caused by a decrease in such limitation, the extent of the median home price decline, and the causes for such reduction in median home price. .

3.

Permanent loan limit increase for FHA

(a)

Increase

Subparagraph (A) of section 203(b)(2) of the National Housing Act (12 U.S.C. 1709(b)(2)(A)) is amended— (1)in clause (i) by striking 115 percent and inserting 125 percent; and (2)in clause (ii) by striking 150 percent and inserting 175 percent. (b)

Discretionary authority To limit decreases

Subparagraph (A) of section 203(b)(2) of the National Housing Act (12 U.S.C. 1709(b)(2)(A)) is amended by inserting after ; and at the end the following: except that notwithstanding the calculation of the maximum dollar amount limitation for any area pursuant to clause (i) of this subparagraph, if any recalculation of the local median home price for any area would otherwise result in a decrease in the maximum dollar amount limitation for any size residence in any such area, the Secretary, considering such factors as market dislocations caused by a decrease in such dollar amount limitation, the extent of the median home price decline, and the causes for such reduction in median home price, may prevent or limit a decrease in such dollar amount limitation from taking place for any such area; and.

4.

Existing loan limits

This Act may not be construed to affect the loan limits for the Federal Home Loan Mortgage Corporation or the Federal National Mortgage Association in effect under section 146 of the Continuing Appropriations Act, 2011 (Public Law 111–242; 124 Stat. 2615) or the FHA mortgage amount limitations in effect under section 145 of such Act.

5.

Effective Date

The amendments made by this Act shall take effect on October 1, 2011.