II 112th CONGRESS 1st Session S. 1508 IN THE SENATE OF THE UNITED STATES August 2, 2011 Mr. Menendez (for himself, Mr. Isakson, and Mrs. Feinstein) introduced the following bill; which was read twice and referred to the Committee on Banking, Housing, and Urban Affairs A BILL To extend loan limits for programs of the Federal Housing Administration, the government-sponsored enterprises, and the Department of Veterans Affairs, and for other purposes.

1.

Short title

This Act may be cited as the Homeownership Affordability Act of 2011.

2.

Federal Housing Administration loan limit extension

(a)

In general

Notwithstanding any other provision of law, for mortgages for which a Federal Housing Administration case number has been assigned during the period beginning on the date of enactment of this Act and ending on December 31, 2013, the dollar amount limitation on the principal obligation for purposes of section 203 of the National Housing Act (12 U.S.C. 1709) shall be considered to be, except for purposes of section 255(g) of such Act (12 U.S.C. 1715z–20(g)), the greater of— (1)the dollar amount limitation on the principal obligation of a mortgage determined under section 203(b)(2) of the National Housing Act (12 U.S.C. 1709(b)(2)); or (2)the dollar amount limitation that was prescribed for such size residence for such area for 2008 pursuant to section 202 of the Economic Stimulus Act of 2008 (Public Law 110–185; 122 Stat. 620).

3.

Fannie Mae and Freddie Mac loan limit extension

(a)

In general

Notwithstanding any other provision of law, for mortgage loans originated during the period beginning on the date of enactment of this Act and ending on December 31, 2013, the limitation on the maximum original principal obligation of a mortgage that may be purchased by the Federal National Mortgage Association or the Federal Home Loan Mortgage Corporation shall be the greater of— (1)the limitation in effect at the time of the purchase of the mortgage loan, as determined pursuant to section 302(b)(2) of the Federal National Mortgage Association Charter Act (12 U.S.C. 1717(b)(2)) or section 305(a)(2) of the Federal Home Loan Mortgage Corporation Act (12 U.S.C. 1454(a)(2)), respectively; or (2)the limitation that was prescribed for loans originated during the period beginning on July 1, 2007 and ending on December 31, 2008, pursuant to section 201 of the Economic Stimulus Act of 2008 (Public Law 110–185, 122 Stat. 619). (b)

Fee increases

Notwithstanding any other provision of law, the Federal Housing Finance Agency shall, by rule or order, increase mortgage guarantee fees charged by the Federal National Mortgage Association and the Federal Home Loan Mortgage Corporation for mortgage loans of not less than $625,500 or more than $729,750 originated during the period beginning on October 1, 2011, and ending on December 31, 2013, in an amount necessary to increase by $336,000,000 the revenue raised from such fees.

4.

Department of Veterans Affairs loan limit extension

Section 501 of the Veterans' Benefits Improvement Act of 2008 (Public Law 110–389; 122 Stat. 4175; 38 U.S.C. 3703 note) is amended, in the matter before paragraph (1), by striking December 31, 2011 and inserting December 31, 2013.