I 

112TH CONGRESS 

1ST SESSION H. R. 1754 

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 5, 2011 

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

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Preserving Equal Ac5 cess to Mortgage Finance Programs Act’’. 

6 SEC. 2. PERMANENT CONFORMING LOAN LIMIT INCREASE 

7 FOR FREDDIE MAC AND FANNIE MAE. 

8 (a) FREDDIE MAC.— 


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•HR 1754 IH

1 (1) INCREASE.—Paragraph (2) of section 

2 305(a) of the Federal Home Loan Mortgage Cor3 poration Act (12 U.S.C. 1454(a)(2)) is amended— 

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

5 (B) in the first sentence, by redesignating 

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

7 (iii), respectively; 

8 (C) in the second sentence, by striking 

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

10 (D) in the last sentence— 

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

12 place such term appears and inserting 

13 ‘‘125 percent’’; and 

14 (ii) by striking ‘‘150 percent’’ and in15 serting ‘‘175 percent’’. 

16 (2) DISCRETIONARY AUTHORITY TO LIMIT DE17 CREASES.—Paragraph (2) of section 305(a) of the 

18 Federal Home Loan Mortgage Corporation Act (12 

19 U.S.C. 1454(a)(2)), as amended by paragraph (1), 

20 is further amended by adding at the end the fol21 lowing new subparagraph: 

22 ‘‘(B) Notwithstanding the calculation of the limita23 tion on the maximum original principal obligation of a 

24 mortgage that may be purchased by the Corporation for 

25 an area pursuant to the last sentence of subparagraph 


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•HR 1754 IH

1 (A), if any recalculation of the local median home price 

2 for any area would otherwise result in a decrease in the 

3 maximum original principal limitation for any size resi4 dence in any such area, the Director of the Federal Hous5 ing Finance Agency may prevent or limit a decrease in 

6 such limitation from taking place for any such area. In 

7 taking such action, the Director shall consider such fac8 tors as market dislocations caused by a decrease in such 

9 limitation, the extent of the median home price decline, 

10 and the causes for such reduction in median home price.’’. 

11 (b) FANNIE MAE.— 

12 (1) INCREASE.—Paragraph (2) of section 

13 302(b) of the Federal National Mortgage Associa14 tion Charter Act (12 U.S.C. 1717(b)(2)) is amend15 ed— 

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

17 (B) in the second sentence, by redesig18 nating clauses (A) through (C) as clauses (i) 

19 through (iii), respectively; 

20 (C) in the third sentence, by striking 

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

22 (D) in the last sentence— 

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

24 place such term appears and inserting 

25 ‘‘125 percent’’; and 


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

3 (2) DISCRETIONARY AUTHORITY TO LIMIT DE4 CREASES.—Paragraph (2) of section 302(b) of the 

5 Federal National Mortgage Association Charter Act 

6 (12 U.S.C. 1717(b)(2)), as amended by paragraph 

7 (1), is further amended by adding at the end the fol8 lowing new subparagraph: 

9 ‘‘(B) Notwithstanding the calculation of the limita10 tion on the maximum original principal obligation of a 

11 mortgage that may be purchased by the corporation for 

12 an area pursuant to the last sentence of subparagraph 

13 (A), if any recalculation of the local median home price 

14 for any area would otherwise result in a decrease in the 

15 maximum original principal limitation for any size resi16 dence in any such area, the Director of the Federal Hous17 ing Finance Agency may prevent or limit a decrease in 

18 such limitation from taking place for any such area. In 

19 taking such action, the Director shall consider such fac20 tors as market dislocations caused by a decrease in such 

21 limitation, the extent of the median home price decline, 

22 and the causes for such reduction in median home price.’’. 


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

2 (a) INCREASE.—Subparagraph (A) of section 

3 203(b)(2) of the National Housing Act (12 U.S.C. 

4 1709(b)(2)(A)) is amended— 

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

6 inserting ‘‘125 percent’’; and 

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

8 inserting ‘‘175 percent’’. 

9 (b) DISCRETIONARY AUTHORITY TO LIMIT DE10 CREASES.—Subparagraph (A) of section 203(b)(2) of the 

11 National Housing Act (12 U.S.C. 1709(b)(2)(A)) is 

12 amended by inserting after ‘‘; and’’ at the end the fol13 lowing: ‘‘except that notwithstanding the calculation of the 

14 maximum dollar amount limitation for any area pursuant 

15 to clause (i) of this subparagraph, if any recalculation of 

16 the local median home price for any area would otherwise 

17 result in a decrease in the maximum dollar amount limita18 tion for any size residence in any such area, the Secretary, 

19 considering such factors as market dislocations caused by 

20 a decrease in such dollar amount limitation, the extent of 

21 the median home price decline, and the causes for such 

22 reduction in median home price, may prevent or limit a 

23 decrease in such dollar amount limitation from taking 

24 place for any such area; and’’. 


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1 SEC. 4. EXISTING LOAN LIMITS. 

2 This Act may not be construed to affect the loan lim3 its for the Federal Home Loan Mortgage Corporation or 

4 the Federal National Mortgage Association in effect under 

5 section 146 of the Continuing Appropriations Act, 2011 

6 (Public Law 111–242; 124 Stat. 2615) or the FHA mort7 gage amount limitations in effect under section 145 of 

8 such Act. 

9 SEC. 5. EFFECTIVE DATE. 

10 The amendments made by this Act shall take effect 

11 on October 1, 2011. 

Æ 


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