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.

Summary: Increasing Homeownership Opportunities Act - Amends the Federal Home Loan Mortgage Corporation Act and the Federal National Mortgage Association Charter Act to increase limitations on the maximum original principal obligation of mortgages that may purchased by the Federal National Mortgage Association (Fannie Mae) and the Federal Home Loan Mortgage Corporation Association (Freddie Mac).

Increases such limitations in areas where 125% (currently, 115%) of the median price of residences of a particular size exceed existing mortgage purchase limitations for such residence size.

Gives the Director of the Federal Housing Finance Agency (FHFA) discretion to increase existing mortgage purchase limitations where an increase is warranted by higher median home prices in an area or sub-area and will have a significant impact on the cost or availability of mortgages for such homes.

Amends the National Housing Act to raise limitations on the maximum principal obligation of mortgages that may be insured by the Secretary of Housing and Urban Development (HUD).

Gives the Secretary discretion to increase mortgage insurance limitations where an increase is warranted by higher median home prices in an area or sub-area and will have a significant impact on the cost or availability of mortgages for such homes.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Increasing Homeownership 
Opportunities Act''.

SEC. 2. PERMANENT CONFORMING LOAN LIMIT INCREASE FOR FREDDIE MAC AND 
              FANNIE MAE.

    (a) Freddie Mac.--
            (1) Conforming loan limit 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)'';
                    (D) in the sixth sentence by striking ``January 1 
                of each year beginning after the effective date of the 
                Federal Housing Finance Regulatory Reform Act of 2008'' 
                and inserting ``January 1, 2010, and January 1 of each 
                year thereafter''; and
                    (E) in the last sentence--
                            (i) by striking ``115 percent'' each place 
                        it appears and inserting ``125 percent''; and
                            (ii) by striking ``150 percent'' and 
                        inserting ``175 percent''.
            (2) Discretionary authority.--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 subparagraphs:
            ``(B) Notwithstanding subparagraph (A) and subject to 
        subparagraph (C), the Director of the Federal Housing Finance 
        Agency may--
                    ``(i) increase the limitation on the maximum 
                original principal obligation of a mortgage that may be 
                purchased by the Corporation that is otherwise in 
                effect pursuant to the sixth sentence of subparagraph 
                (A) with respect to any particular size or sizes of 
                residences located in any particular area or areas by 
                not more than $100,000; or
                    ``(ii) increase, for any geographic area that is 
                smaller than an area for which a dollar amount 
                limitation on the principal obligation of a mortgage is 
                established pursuant to this paragraph, the limitation 
                otherwise in effect for such size or sizes of 
                residences for such sub-area or sub-areas, but in no 
                case to an amount that exceeds the maximum nationwide 
                amount otherwise permitted under this subparagraph.
            ``(C) The Director of the Federal Housing Finance Agency 
        may increase the limitation on the maximum original principal 
        obligation of a mortgage for any area or sub-area pursuant to 
        subparagraph (B) only if the Director makes a determination 
        that--
                    ``(i) such increase is warranted by higher median 
                home prices in such area or sub-area; and
                    ``(ii) such increase will have a significant impact 
                on the cost or availability of mortgages having 
                principal obligation amounts in the range of such 
                increased limit.
            ``(D) 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) Conforming loan limit 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)'';
                    (D) in the seventh sentence by striking ``January 1 
                of each year beginning after the effective date of the 
                Federal Housing Finance Regulatory Reform Act of 2008'' 
                and inserting ``January 1, 2010, and January 1 of each 
                year thereafter''; and
                    (E) in the last sentence--
                            (i) by striking ``115 percent'' each place 
                        it appears and inserting ``125 percent''; and
                            (ii) by striking ``150 percent'' and 
                        inserting ``175 percent''.
            (2) Discretionary authority.--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 subparagraphs:
            ``(B) Notwithstanding subparagraph (A) and subject to 
        subparagraph (C), the Director of the Federal Housing Finance 
        Agency may--
                    ``(i) increase the limitation on the maximum 
                original principal obligation of a mortgage that may be 
                purchased by the corporation that is otherwise in 
                effect pursuant to the seventh sentence of subparagraph 
                (A) with respect to any particular size or sizes of 
                residences located in any particular area or areas by 
                not more than $100,000; or
                    ``(ii) increase, for any geographic area that is 
                smaller than an area for which a dollar amount 
                limitation on the principal obligation of a mortgage is 
                established pursuant to this paragraph, the limitation 
                otherwise in effect for such size or sizes of 
                residences for such sub-area or sub-areas, but in no 
                case to an amount that exceeds the maximum nationwide 
                amount otherwise permitted under this subparagraph.
            ``(C) The Director of the Federal Housing Finance Agency 
        may increase the limitation on the maximum original principal 
        obligation of a mortgage for any area or sub-area pursuant to 
        subparagraph (B) only if the Director makes a determination 
        that--
                    ``(i) such increase is warranted by higher median 
                home prices in such area or sub-area; and
                    ``(ii) such increase will have a significant impact 
                on the cost or availability of mortgages having 
                principal obligation amounts in the range of such 
                increased limit.
            ``(D) 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.''.

SEC. 3. PERMANENT LOAN LIMIT INCREASE FOR FHA.

    (a) Loan Limit 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.--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, if 
the Secretary determines an increase is warranted by higher median home 
prices in an area or sub-area and such an increase will have a 
significant impact on the cost or availability of mortgages having 
principal obligation amounts in the range of an increased limit, the 
Secretary may increase the maximum dollar amount limitation that is 
otherwise in effect pursuant to the preceding provisions of this 
subparagraph with respect to any particular size or sizes of 
residences, or with respect to residences located in any particular 
area or areas, by not more than $100,000, or increase, for any 
geographic area that is smaller than an area for which a dollar amount 
limitation is determined pursuant to the preceding provisions of this 
subparagraph, the limitation otherwise in effect for such size or sizes 
of residences for such sub-area or sub-areas, but in no case to an 
amount that exceeds the maximum nationwide amount otherwise permitted 
under this subparagraph; and 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''.

SEC. 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 1203 of the American Recovery and 
Reinvestment Act of 2009 (Public Law 111-5) or the FHA mortgage amount 
limitations in effect under section 1202 of such Act.

SEC. 5. EFFECTIVE DATE.

    The amendments made by this Act shall take effect January 1, 2010.