To make permanent the increases made by the Economic Stimulus Act of 2008 in the loan limits for the Federal National Mortgage Association, the Federal Home Loan Mortgage Corporation, and the FHA.

Summary: Homeowner Opportunity Act of 2008 - Amends the Federal National Mortgage Association Charter Act, the Federal Home Loan Mortgage Corporation Act, and the National Housing Act to make permanent certain increases in the maximum original principal obligation of a mortgage that may be purchased by the Federal National Mortgage Association (Fannie Mae) and the Federal Home Loan Mortgage Corporation (Freddie Mac).

Expresses the sense of the Congress to encourage Fannie Mae and Freddie Mac to securitize mortgages acquired under the increased conforming loan limits to the extent that such securitizations do 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.

Amends the National Housing Act to: (1) increase the mortgage loan limit for mortgage insurance in high-cost areas; and (2) direct the Secretary of Housing and Urban Development to publish the median house prices and mortgage principal obligation limits for all areas each year.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Homeowner Opportunity Act of 2008''.

SEC. 2. PERMANENT CONFORMING LOAN LIMIT INCREASE FOR HIGH-COST AREAS 
              FOR FANNIE MAE AND FREDDIE MAC.

    (a) Fannie Mae.--Section 302(b)(2) of the Federal National Mortgage 
Association Charter Act (12 U.S.C. 1717(b)(2)) is amended--
            (1) in the second sentence, by redesignating clause (A) 
        through (C) as clauses (i) through (iii), respectively;
            (2) in the third sentence, by striking ``clause (A)'' and 
        inserting ``clause (i)'';
            (3) by inserting ``(A)'' after ``(2)''; and
            (4) by adding at the end the following new subparagraph:
    ``(B)(i) Notwithstanding subparagraph (A), for mortgages originated 
on or after January 1, 2009, the limitation on the maximum original 
principal obligation of a mortgage that may be purchased by the 
corporation shall be the higher of--
            ``(I) the limitation determined under subparagraph (A) for 
        a residence of the applicable size; or
            ``(II) 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 under subparagraph (A) for a 
        residence of the applicable size.
    ``(ii) The areas and area median prices used for purposes of the 
determination under this subparagraph shall be the areas and area 
median prices used by the Secretary of Housing and Urban Development in 
determining the applicable limits under section 203(b)(2) of the 
National Housing Act (12 U.S.C. 1709(b)(2)). A mortgage that is 
eligible for purchase by the corporation at the time the mortgage is 
originated under this subparagraph shall be eligible for such purchase 
for the duration of the term of the mortgage.''.
    (b) Freddie Mac.--Section 305(a)(2) of the Federal Home Loan 
Mortgage Corporation Act (12 U.S.C. 1454(a)(2)) is amended--
            (1) in the first sentence, by redesignating clause (A) 
        through (C) as clauses (i) through (iii), respectively;
            (2) in the second sentence, by striking ``clause (A)'' and 
        inserting ``clause (i)'';
            (3) by inserting ``(A)'' after ``(2)''; and
            (4) by adding at the end the following new subparagraph:
    ``(B)(i) Notwithstanding subparagraph (A), for mortgages originated 
on or after January 1, 2009, the limitation on the maximum original 
principal obligation of a mortgage that may be purchased by the 
Corporation shall be the higher of--
            ``(I) the limitation determined under subparagraph (A) for 
        a residence of the applicable size; or
            ``(II) 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 under subparagraph (A) for a 
        residence of the applicable size.
    ``(ii) The areas and area median prices used for purposes of the 
determination under this subparagraph shall be the areas and area 
median prices used by the Secretary of Housing and Urban Development in 
determining the applicable limits under section 203(b)(2) of the 
National Housing Act (12 U.S.C. 1709(b)(2)). A mortgage that is 
eligible for purchase by the Corporation at the time the mortgage is 
originated under this subparagraph shall be eligible for such purchase 
for the duration of the term of the mortgage.''.
    (c) 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 by the amendments made by 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.

SEC. 3. PERMANENT LOAN LIMIT INCREASE FOR HIGH-COST AREAS FOR FHA.

    (a) In General.--Section 203(b)(2) of the National Housing Act (12 
U.S.C. 1709(b)(2)) is amended by striking subparagraph (A) and 
inserting the following new subparagraph:
                    ``(A) that does not exceed the lesser of--
                            ``(i) in the case of a 1-family residence, 
                        125 percent of 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 determined 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 determined under such 
                        section for a 1-family residence; or
                            ``(ii) 175 percent of the dollar amount 
                        limitation determined under such section 
                        305(a)(2)(A) for a residence of the applicable 
                        size (without regard to any authority to 
                        increase such limitation with respect to 
                        properties located in Alaska, Guam, Hawaii, or 
                        the Virgin Islands and without regard to the 
                        high-cost area limitation under such section 
                        305(a)(2)(B)); except that the dollar amount 
                        limitation in effect under this subsection for 
                        any size residence for any area shall not be 
                        less than the greater of--
                                    ``(I) the dollar amount limitation 
                                in effect under this paragraph for the 
                                area on October 21, 1998; or
                                    ``(II) 65 percent of the dollar 
                                amount limitation determined under such 
                                section 305(a)(2)(A) for a residence of 
                                the applicable size; and''.
    (b) Publication of Area Median Prices and Loan Limits.--Section 
203(b) of the National Housing Act (12 U.S.C. 1709(b)(2)(A)) is amended 
by adding after and below paragraph (9) the following:
``The Secretary of Housing and Urban Development shall publish the 
median house prices and mortgage principal obligation limits for all 
areas each year, not less than 45 days before the time of determining 
the annual adjustments to the dollar amount limitations under section 
305(a)(2)(A) of the Federal Home Loan Mortgage Corporation Act (12 
U.S.C. 1454(a)(2)(A))''.