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[Congressional Bills 104th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4063 Introduced in House (IH)]

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.

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Conforming Loan Limit Correction 
Act''.

SEC. 2. GSE CONFORMING LOAN LIMIT.

    (a) FNMA.--The antepenultimate sentence of section 302(b)(2) of the 
National Housing Act (12 U.S.C. 1717(b)(2)) is amended by inserting 
before the period at the end the following: ``; except that for each 
adjustment in or after 1997 that increases the maximum limitations, 
each maximum limitation resulting from such adjustment may not exceed 
the sum of (A) the amount of the maximum limitation in effect on 
December 31, 1993, and (B) an amount equal to the product of the 
percentage increase in the national average 1-family house price (as 
measured by such survey) from October 1992 to the most recent October 
and the amount of such maximum limitation in effect on December 31, 
1993''.
    (b) FHLMC.--The antepenultimate sentence of section 305(a)(2) of 
the Federal Home Loan Mortgage Corporation Act (12 U.S.C. 1454(a)(2)) 
is amended by inserting before the period at the end the following: ``; 
except that for each adjustment made in or after 1997 that increases 
the maximum limitations, each maximum limitation resulting from such 
adjustment may not exceed the sum of (A) the amount of the maximum 
limitation in effect on December 31, 1993, and (B) an amount equal to 
the product of the percentage increase in the national average 1-family 
house price (as measured by such survey) from October 1992 to the most 
recent October and the amount of such maximum limitation in effect on 
December 31, 1993''.

SEC. 3. FHA LOAN LIMIT.

    Section 203(b)(2)(A)(ii) of the National Housing Act (12 U.S.C. 
1709(b)(2)(A)(ii)) is amended--
            (1) by inserting ``the average of (I)'' after ``75 percent 
        of''; and
            (2) by inserting before the semicolon at the end the 
        following: ``, and (II) the dollar amount limitation determined 
        under section 302(b)(2) of this Act for a residence of the 
        applicable size''.
                                 <all>
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