I 

111TH CONGRESS 

1ST SESSION H. R. 2483 

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. 

IN THE HOUSE OF REPRESENTATIVES 

MAY 19, 2009 

Mr. SHERMAN (for himself, Mr. GARY G. MILLER of California, Mr. FRANK

of Massachusetts, Mr. GRAYSON, Mrs. HALVORSON, Ms. HARMAN, Ms. 

SPEIER, Mrs. CAPPS, Mr. CULBERSON, Mr. ROHRABACHER, Mr. 

CUMMINGS, Mr. SCHIFF, Mr. MCNERNEY, Mr. ABERCROMBIE, Mr. 

GEORGE MILLER of California, Mr. CARDOZA, Mrs. TAUSCHER, Mr. FILNER, Mr. BILBRAY, Mr. HONDA, Mr. BERMAN, Mrs. BONO MACK, Mrs. 

MALONEY, Mr. CAMPBELL, Mr. ACKERMAN, Mr. GALLEGLY, Mr. 

DREIER, Mr. FARR, Mr. BISHOP of New York, Ms. WATERS, Ms. ESHOO, 

and Mr. HALL of New York) introduced the following bill; which was referred to the Committee on Financial Services 

A BILL 

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. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 


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1 SECTION 1. SHORT TITLE. 

2 This Act may be cited as the ‘‘Increasing Homeown3 ership Opportunities Act’’. 

4 SEC. 2. PERMANENT CONFORMING LOAN LIMIT INCREASE 

5 FOR FREDDIE MAC AND FANNIE MAE. 

6 (a) FREDDIE MAC.— 

7 (1) CONFORMING LOAN LIMIT INCREASE.— 

8 Paragraph (2) of section 305(a) of the Federal 

9 Home Loan Mortgage Corporation Act (12 U.S.C. 

10 1454(a)(2)) is amended— 

11 (A) by inserting ‘‘(A)’’ after ‘‘(2)’’; 

12 (B) in the first sentence, by redesignating 

13 clauses (A) through (C) as clauses (i) through 

14 (iii), respectively; 

15 (C) in the second sentence, by striking 

16 ‘‘clause (A)’’ and inserting ‘‘clause (i)’’; 

17 (D) in the sixth sentence by striking ‘‘Jan18 uary 1 of each year beginning after the effective 

19 date of the Federal Housing Finance Regu20 latory Reform Act of 2008’’ and inserting 

21 ‘‘January 1, 2010, and January 1 of each year 

22 thereafter’’; and 

23 (E) in the last sentence— 

24 (i) by striking ‘‘115 percent’’ each 

25 place it appears and inserting ‘‘125 per26 cent’’; and 


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1 (ii) by striking ‘‘150 percent’’ and in2 serting ‘‘175 percent’’. 

3 (2) DISCRETIONARY AUTHORITY.—Paragraph 

4 (2) of section 305(a) of the Federal Home Loan 

5 Mortgage Corporation Act (12 U.S.C. 1454(a)(2)), 

6 as amended by paragraph (1), is further amended by 

7 adding at the end the following new subparagraphs: 

8 ‘‘(B) Notwithstanding subparagraph (A) and 

9 subject to subparagraph (C), the Director of the 

10 Federal Housing Finance Agency may— 

11 ‘‘(i) increase the limitation on the max12 imum original principal obligation of a mort13 gage that may be purchased by the Corporation 

14 that is otherwise in effect pursuant to the sixth 

15 sentence of subparagraph (A) with respect to 

16 any particular size or sizes of residences located 

17 in any particular area or areas by not more 

18 than $100,000; or 

19 ‘‘(ii) increase, for any geographic area that 

20 is smaller than an area for which a dollar 

21 amount limitation on the principal obligation of 

22 a mortgage is established pursuant to this para23 graph, the limitation otherwise in effect for 

24 such size or sizes of residences for such sub25 area or sub-areas, but in no case to an amount 


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1 that exceeds the maximum nationwide amount 

2 otherwise permitted under this subparagraph. 

3 ‘‘(C) The Director of the Federal Housing Fi4 nance Agency may increase the limitation on the 

5 maximum original principal obligation of a mortgage 

6 for any area or sub-area pursuant to subparagraph 

7 (B) only if the Director makes a determination 

8 that— 

9 ‘‘(i) such increase is warranted by higher 

10 median home prices in such area or sub-area; 

11 and 

12 ‘‘(ii) such increase will have a significant 

13 impact on the cost or availability of mortgages 

14 having principal obligation amounts in the 

15 range of such increased limit. 

16 ‘‘(D) Notwithstanding the calculation of the 

17 limitation on the maximum original principal obliga18 tion of a mortgage that may be purchased by the 

19 Corporation for an area pursuant to the last sen20 tence of subparagraph (A), if any recalculation of 

21 the local median home price for any area would oth22 erwise result in a decrease in the maximum original 

23 principal limitation for any size residence in any 

24 such area, the Director of the Federal Housing Fi25 nance Agency may prevent or limit a decrease in 


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1 such limitation from taking place for any such area. 

2 In taking such action, the Director shall consider 

3 such factors as market dislocations caused by a de4 crease in such limitation, the extent of the median 

5 home price decline, and the causes for such reduc6 tion in median home price.’’. 

7 (b) FANNIE MAE.— 

8 (1) CONFORMING LOAN LIMIT INCREASE.— 

9 Paragraph (2) of section 302(b) of the Federal Na10 tional Mortgage Association Charter Act (12 U.S.C. 

11 1717(b)(2)) is amended— 

12 (A) by inserting ‘‘(A)’’ after ‘‘(2)’’; 

13 (B) in the second sentence, by redesig14 nating clauses (A) through (C) as clauses (i) 

15 through (iii), respectively; 

16 (C) in the third sentence, by striking 

17 ‘‘clause (A)’’ and inserting ‘‘clause (i)’’; 

18 (D) in the seventh sentence by striking 

19 ‘‘January 1 of each year beginning after the ef20 fective date of the Federal Housing Finance 

21 Regulatory Reform Act of 2008’’ and inserting 

22 ‘‘January 1, 2010, and January 1 of each year 

23 thereafter’’; and 

24 (E) in the last sentence— 


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1 (i) by striking ‘‘115 percent’’ each 

2 place it appears and inserting ‘‘125 per3 cent’’; and 

4 (ii) by striking ‘‘150 percent’’ and in5 serting ‘‘175 percent’’. 

6 (2) DISCRETIONARY AUTHORITY.—Paragraph 

7 (2) of section 302(b) of the Federal National Mort8 gage Association Charter Act (12 U.S.C. 

9 1717(b)(2)), as amended by paragraph (1), is fur10 ther amended by adding at the end the following 

11 new subparagraphs: 

12 ‘‘(B) Notwithstanding subparagraph (A) and 

13 subject to subparagraph (C), the Director of the 

14 Federal Housing Finance Agency may— 

15 ‘‘(i) increase the limitation on the max16 imum original principal obligation of a mort17 gage that may be purchased by the corporation 

18 that is otherwise in effect pursuant to the sev19 enth sentence of subparagraph (A) with respect 

20 to any particular size or sizes of residences lo21 cated in any particular area or areas by not 

22 more than $100,000; or 

23 ‘‘(ii) increase, for any geographic area that 

24 is smaller than an area for which a dollar 

25 amount limitation on the principal obligation of 


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1 a mortgage is established pursuant to this para2 graph, the limitation otherwise in effect for 

3 such size or sizes of residences for such sub4 area or sub-areas, but in no case to an amount 

5 that exceeds the maximum nationwide amount 

6 otherwise permitted under this subparagraph. 

7 ‘‘(C) The Director of the Federal Housing Fi8 nance Agency may increase the limitation on the 

9 maximum original principal obligation of a mortgage 

10 for any area or sub-area pursuant to subparagraph 

11 (B) only if the Director makes a determination 

12 that— 

13 ‘‘(i) such increase is warranted by higher 

14 median home prices in such area or sub-area; 

15 and 

16 ‘‘(ii) such increase will have a significant 

17 impact on the cost or availability of mortgages 

18 having principal obligation amounts in the 

19 range of such increased limit. 

20 ‘‘(D) Notwithstanding the calculation of the 

21 limitation on the maximum original principal obliga22 tion of a mortgage that may be purchased by the 

23 corporation for an area pursuant to the last sentence 

24 of subparagraph (A), if any recalculation of the local 

25 median home price for any area would otherwise reVerDate Nov 24 2008 05:25 May 20, 2009 Jkt 079200 PO 00000 Frm 00007 Fmt 6652 Sfmt 6201 E:\BILLS\H2483.IH H2483

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1 sult in a decrease in the maximum original principal 

2 limitation for any size residence in any such area, 

3 the Director of the Federal Housing Finance Agency 

4 may prevent or limit a decrease in such limitation 

5 from taking place for any such area. In taking 

6 such action, the Director shall consider such factors 

7 as market dislocations caused by a decrease in such 

8 limitation, the extent of the median home price de9 cline, and the causes for such reduction in median 

10 home price.’’. 

11 SEC. 3. PERMANENT LOAN LIMIT INCREASE FOR FHA. 

12 (a) LOAN LIMIT INCREASE.—Subparagraph (A) of 

13 section 203(b)(2) of the National Housing Act (12 U.S.C. 

14 1709(b)(2)(A)) is amended— 

15 (1) in clause (i) by striking ‘‘115 percent’’ and 

16 inserting ‘‘125 percent’’; and 

17 (2) in clause (ii) by striking ‘‘150 percent’’ and 

18 inserting ‘‘175 percent’’. 

19 (b) DISCRETIONARY AUTHORITY.—Subparagraph 

20 (A) of section 203(b)(2) of the National Housing Act (12 

21 U.S.C. 1709(b)(2)(A) is amended by inserting after ‘‘; 

22 and’’ at the end the following: ‘‘except that, if the Sec23 retary determines an increase is warranted by higher me24 dian home prices in an area or sub-area and such an in25 crease will have a significant impact on the cost or availVerDate Nov 24 2008 05:25 May 20, 2009 Jkt 079200 PO 00000 Frm 00008 Fmt 6652 Sfmt 6201 E:\BILLS\H2483.IH H2483

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1 ability of mortgages having principal obligation amounts 

2 in the range of an increased limit, the Secretary may in3 crease the maximum dollar amount limitation that is oth4 erwise in effect pursuant to the preceding provisions of 

5 this subparagraph with respect to any particular size or 

6 sizes of residences, or with respect to residences located 

7 in any particular area or areas, by not more than 

8 $100,000, or increase, for any geographic area that is 

9 smaller than an area for which a dollar amount limitation 

10 is determined pursuant to the preceding provisions of this 

11 subparagraph, the limitation otherwise in effect for such 

12 size or sizes of residences for such sub-area or sub-areas, 

13 but in no case to an amount that exceeds the maximum 

14 nationwide amount otherwise permitted under this sub15 paragraph; and except that notwithstanding the calcula16 tion of the maximum dollar amount limitation for any area 

17 pursuant to clause (i) of this subparagraph, if any recal18 culation of the local median home price for any area would 

19 otherwise result in a decrease in the maximum dollar 

20 amount limitation for any size residence in any such area, 

21 the Secretary, considering such factors as market disloca22 tions caused by a decrease in such dollar amount limita23 tion, the extent of the median home price decline, and the 

24 causes for such reduction in median home price, may preVerDate Nov 24 2008 05:25 May 20, 2009 Jkt 079200 PO 00000 Frm 00009 Fmt 6652 Sfmt 6201 E:\BILLS\H2483.IH H2483

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1 vent or limit a decrease in such dollar amount limitation 

2 from taking place for any such area; and’’. 

3 SEC. 4. EXISTING LOAN LIMITS. 

4 This Act may not be construed to affect the loan lim5 its for the Federal Home Loan Mortgage Corporation or 

6 the Federal National Mortgage Association in effect under 

7 section 1203 of the American Recovery and Reinvestment 

8 Act of 2009 (Public Law 111–5) or the FHA mortgage 

9 amount limitations in effect under section 1202 of such 

10 Act. 

11 SEC. 5. EFFECTIVE DATE. 

12 The amendments made by this Act shall take effect 

13 January 1, 2010. 

Æ 


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