[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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