II 

110TH CONGRESS 

1ST SESSION S. 1805 

To amend the National Housing Act to increase the mortgage amount limits 

applicable to housing insured by FHA mortgage insurance. 

IN THE SENATE OF THE UNITED STATES 

JULY 17, 2007 

Mr. SCHUMER introduced the following bill; which was read twice and referred 

to the Committee on Banking, Housing, and Urban Affairs 

A BILL 

To amend the National Housing Act to increase the mortgage amount limits applicable to housing insured by 

FHA mortgage insurance. 

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 ‘‘FHA Loan Limit Ad5 justment Act of 2007’’. 

6 SEC. 2. MAXIMUM PRINCIPAL LOAN OBLIGATION. 

7 Paragraph (2) of section 203(b) of the National 

8 Housing Act (12 U.S.C. 1709(b)(2)) is amended— 

9 (1) by striking subparagraphs (A) and (B) and 

10 inserting the following new subparagraphs: 


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1 ‘‘(A) not to exceed the lesser of— 

2 ‘‘(i) in the case of a 1-family resi3 dence, the median 1-family house price in 

4 the area, as determined by the Secretary; 

5 and in the case of a 2-, 3-, or 4-family res6 idence, the percentage of such median 

7 price that bears the same ratio to such me8 dian price as the dollar amount limitation 

9 in effect under section 305(a)(2) of the 

10 Federal Home Loan Mortgage Corporation 

11 Act (12 U.S.C. 1454(a)(2)) for a 2-, 3-, or 

12 4-family residence, respectively, bears to 

13 the dollar amount limitation in effect 

14 under such section for a 1-family resi15 dence; or 

16 ‘‘(ii) the dollar amount limitation de17 termined under such section 305(a)(2) for 

18 a residence of the applicable size; 

19 except that the dollar amount limitation in ef20 fect for any area under this subparagraph may 

21 not be less than the greater of (I) the dollar 

22 amount limitation in effect under this section 

23 for the area on October 21, 1998, or (II) 65 

24 percent of the dollar limitation determined 


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

2 the applicable size; and 

3 ‘‘(B) not to exceed the appraised value of 

4 the property, plus any initial service charges, 

5 appraisal, inspection, and other fees in connec6 tion with the mortgage as approved by the Sec7 retary.’’; 

8 (2) in the matter after and below subparagraph 

9 (B), by striking the second sentence (relating to a 

10 definition of ‘‘average closing cost’’) and all that fol11 lows through ‘‘title 38, United States Code’’; and 

12 (3) by striking the last undesignated paragraph 

13 (relating to counseling with respect to the respon14 sibilities and financial management involved in 

15 homeownership). 

16 SEC. 3. MULTIFAMILY HOUSING MORTGAGE LIMITS IN 

17 HIGH COST AREAS. 

18 The National Housing Act is amended— 

19 (1) in sections 207(c)(3), 213(b)(2)(B)(i), 

20 221(d)(3)(ii)(II), 221(d)(4)(ii)(II), 231(c)(2)(B), 

21 and 234(e)(3)(B) (12 U.S.C. 1713(c)(3), 

22 1715e(b)(2)(B)(i), 1715l(d)(3)(ii)(II), 

23 1715l(d)(4)(ii)(II), 1715v(c)(2)(B), and 

24 1715y(e)(3)(B))— 


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1 (A) by striking ‘‘140 percent’’ each place 

2 such term appears and inserting ‘‘170 percent’’; 

3 and 

4 (B) by striking ‘‘170 percent in high cost 

5 areas’’ each place such term appears and in6 serting ‘‘215 percent in high cost areas’’; and 

7 (2) in section 220(d)(3)(B)(iii)(III) (12 U.S.C. 

8 1715k(d)(3)(B)(iii)(III)) by striking ‘‘206A’’ and all 

9 that follows through ‘‘project-by-project basis’’ and 

10 inserting the following: ‘‘206A of this Act) by not to 

11 exceed 170 percent in any geographical area where 

12 the Secretary finds that cost levels so require and by 

13 not to exceed 170 percent, or 215 percent in high 

14 cost areas, where the Secretary determines it nec15 essary on a project-by-project basis’’. 

Æ 


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