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: Preserving Equal Access to Mortgage Finance Programs 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 prevent or limit a decrease in the limitation on the maximum original principal obligation of a mortgage that may be purchased by the corporation for an area.

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 prevent or limit a decrease in the maximum dollar amount limitation for any area from taking place for any such area.

SECTION 1. SHORT TITLE.

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

SEC. 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.''.

SEC. 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''.

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 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.

SEC. 5. EFFECTIVE DATE.

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