I 

110TH CONGRESS 

2D SESSION H. R. 5153 

To increase temporarily the conforming loan limits of the Federal National 

Mortgage Association and the Federal Home Loan Mortgage Corporation 

in certain areas, enhance mortgage market liquidity, and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

JANUARY 29, 2008 

Mr. KANJORSKI introduced the following bill; which was referred to the 

Committee on Financial Services 

A BILL 

To increase temporarily the conforming loan limits of the 

Federal National Mortgage Association and the Federal 

Home Loan Mortgage Corporation in certain areas, enhance mortgage market liquidity, and for other purposes. 

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 ‘‘Conforming Loan 

5 Limit Temporary Adjustment Act of 2008’’. 


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HR 5153 IH 

1 SEC. 2. TEMPORARY CONFORMING LOAN LIMIT INCREASE 

2 FOR FANNIE MAE AND FREDDIE MAC. 

3 (a) INCREASE OF HIGH COST AREAS LIMITS FOR

4 HOUSING GSES.—For mortgages originated during the 

5 period beginning on July 1, 2007, and ending at the end 

6 of December 31, 2008: 

7 (1) FANNIE MAE.—With respect to the Federal 

8 National Mortgage Association, notwithstanding sec9 tion 302(b)(2) of the Federal National Mortgage As10 sociation Charter Act (12 U.S.C. 1717(b)(2)), the 

11 limitation on the maximum original principal obliga12 tion of a mortgage that may be purchased by the 

13 Association shall be the higher of— 

14 (A) the limitation for 2008 determined 

15 under such section 302(b)(2) for a residence of 

16 the applicable size; or 

17 (B) 125 percent of the area median price 

18 for a residence of the applicable size, but in no 

19 case to exceed 175 percent of the limitation for 

20 2008 determined under such section 302(b)(2) 

21 for a residence of the applicable size. 

22 (2) FREDDIE MAC.—With respect to the Fed23 eral Home Loan Mortgage Corporation, notwith24 standing section 305(a)(2) of the Federal Home 

25 Loan Mortgage Corporation Act (12 U.S.C. 

26 1454(a)(2)), the limitation on the maximum original 


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HR 5153 IH 

1 principal obligation of a mortgage that may be pur2 chased by the Corporation shall be the higher of— 

3 (A) the limitation determined for 2008 

4 under such section 305(a)(2) for a residence of 

5 the applicable size; or 

6 (B) 125 percent of the area median price 

7 for a residence of the applicable size, but in no 

8 case to exceed 175 percent of the limitation de9 termined for 2008 under such section 305(a)(2) 

10 for a residence of the applicable size. 

11 (b) DETERMINATION OF LIMITS.—The areas and 

12 area median prices used for purposes of the determina13 tions under subsection (a) shall be the areas and area me14 dian prices developed by the Secretary of Housing and 

15 Urban Development in accordance with subsection (f). 

16 (c) RULE OF CONSTRUCTION.—A mortgage origi17 nated during the period referred to in subsection (a) that 

18 is eligible for purchase by the Federal National Mortgage 

19 Association or the Federal Home Loan Mortgage Corpora20 tion pursuant to this section shall be eligible for such pur21 chase for the duration of the term of the mortgage, not22 withstanding that such purchase occurs after the expira23 tion of such period. 

24 (d) EFFECT ON HOUSING GOALS.—Notwithstanding 

25 any other provision of law, mortgages purchased in acVerDate Aug 31 2005 02:12 Jan 31, 2008 Jkt 069200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\H5153.IH H5153

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1 cordance with the increased maximum original principal 

2 obligation limitations determined pursuant to this section 

3 shall not be considered in determining performance with 

4 respect to any of the housing goals established under sec5 tion 1332, 1333, or 1334 of the Housing and Community 

6 Development Act of 1992 (12 U.S.C. 4562–4), and shall 

7 not be considered in determining compliance with such 

8 goals pursuant to section 1336 of such Act (12 U.S.C. 

9 4566) and regulations, orders, or guidelines issued there10 under. 

11 (e) SENSE OF CONGRESS.—It is the sense of the Con12 gress that the securitization of mortgages by the Federal 

13 National Mortgage Association and the Federal Home 

14 Loan Mortgage Corporation plays an important role in 

15 providing liquidity to the United States housing markets. 

16 Therefore, the Congress encourages the Federal National 

17 Mortgage Association and the Federal Home Loan Mort18 gage Corporation to securitize mortgages acquired under 

19 the increased conforming loan limits established in this 

20 section, to the extent that such securitizations can be ef21 fected in a timely and efficient manner that does not im22 pose additional costs for mortgages originated, purchased, 

23 or securitized under the existing limits or interfere with 

24 the goal of adding liquidity to the market. 


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HR 5153 IH 

1 (f) PUBLICATION OF AREA MEDIAN PRICES AND

2 LOAN LIMITS.—The Secretary of Housing and Urban De3 velopment shall publish the median house prices and mort4 gage principal obligation limits, as revised pursuant to this 

5 section, for all areas as soon as practicable, but in no case 

6 more than 30 days after the date of the enactment of this 

7 Act. With respect to existing areas for which the Secretary 

8 has not established area median prices before such date 

9 of enactment, the Secretary may rely on existing commer10 cial data in determining area median prices and calcu11 lating such revised principal obligation limits. 

Æ 


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