I

104TH CONGRESS

2D SESSION H. R. 4063

To provide for adjustments to the conforming loan limits for the Federal

National Mortgage Association and the Federal Home Loan Mortgage

Corporation and to the maximum mortgage limit for the single family

mortgage insurance program of the Department of Housing and Urban

Development that more accurately reflect the changes in housing costs,

and for other purposes.

IN THE HOUSE OF REPRESENTATIVES

SEPTEMBER 12, 1996

Mr. LAZIO of New York (for himself and Mr. BAKER of Louisiana) introduced

the following bill; which was referred to the Committee on Banking and

Financial Services

A BILL

To provide for adjustments to the conforming loan limits

for the Federal National Mortgage Association and the

Federal Home Loan Mortgage Corporation and to the

maximum mortgage limit for the single family mortgage

insurance program of the Department of Housing and

Urban Development that more accurately reflect the

changes in housing costs, 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,
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1 SECTION 1. SHORT TITLE.

2 This Act may be cited as the ‘‘Conforming Loan

3 Limit Correction Act’’.

4 SEC. 2. GSE CONFORMING LOAN LIMIT.

5 (a) FNMA.—The antepenultimate sentence of sec6 tion 302(b)(2) of the National Housing Act (12 U.S.C.

7 1717(b)(2)) is amended by inserting before the period at

8 the end the following: ‘‘; except that for each adjustment

9 in or after 1997 that increases the maximum limitations,

10 each maximum limitation resulting from such adjustment

11 may not exceed the sum of (A) the amount of the maxi12 mum limitation in effect on December 31, 1993, and (B)

13 an amount equal to the product of the percentage increase

14 in the national average 1-family house price (as measured

15 by such survey) from October 1992 to the most recent

16 October and the amount of such maximum limitation in

17 effect on December 31, 1993’’.

18 (b) FHLMC.—The antepenultimate sentence of sec19 tion 305(a)(2) of the Federal Home Loan Mortgage Cor20 poration Act (12 U.S.C. 1454(a)(2)) is amended by insert21 ing before the period at the end the following: ‘‘; except

22 that for each adjustment made in or after 1997 that in23 creases the maximum limitations, each maximum limita24 tion resulting from such adjustment may not exceed the

25 sum of (A) the amount of the maximum limitation in ef26 fect on December 31, 1993, and (B) an amount equal to
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1 the product of the percentage increase in the national av2 erage 1-family house price (as measured by such survey)

3 from October 1992 to the most recent October and the

4 amount of such maximum limitation in effect on Decem5 ber 31, 1993’’.

6 SEC. 3. FHA LOAN LIMIT.

7 Section 203(b)(2)(A)(ii) of the National Housing Act

8 (12 U.S.C. 1709(b)(2)(A)(ii)) is amended—

9 (1) by inserting ‘‘the average of (I)’’ after ‘‘75

10 percent of’’; and

11 (2) by inserting before the semicolon at the end

12 the following: ‘‘, and (II) the dollar amount limita13 tion determined under section 302(b)(2) of this Act

14 for a residence of the applicable size’’.

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