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include any property to which section 168(k) ap-
plies.’’.
(7) Paragraph (5) of section 168(l) of such Code
is amended—
(A) by striking ‘‘September 10, 2001’’ in
subparagraph (A) and inserting ‘‘December 31,
2007’’, and
(B) by striking ‘‘January 1, 2005’’ in sub-
paragraph (B) and inserting ‘‘January 1,
2009’’.
(8) Subparagraph (D) of section 1400L(b)(2) of
such Code is amended by striking ‘‘January 1, 2005’’
and inserting ‘‘January 1, 2010’’.
(9) Paragraph (3) of section 1400N(d) of such
Code is amended—
(A) by striking ‘‘September 10, 2001’’ in
subparagraph (A) and inserting ‘‘December 31,
2007’’, and
(B) by striking ‘‘January 1, 2005’’ in sub-
paragraph (B) and inserting ‘‘January 1,
2009’’.
(10) Paragraph (6) of section 1400N(d) of such
Code is amended by adding at the end the following
new subparagraph:
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‘‘(E) EXCEPTION FOR BONUS DEPRECIATION
PROPERTY
UNDER
SECTION 168(k).—The term
‘specified Gulf Opportunity Zone extension prop-
erty’ shall not include any property to which sec-
tion 168(k) applies.’’.
(11) The heading for subsection (k) of section 168
of such Code is amended—
(A) by striking ‘‘SEPTEMBER 10, 2001’’ and
inserting ‘‘DECEMBER 31, 2007’’, and
(B) by striking ‘‘JANUARY 1, 2005’’ and in-
serting ‘‘JANUARY 1, 2009’’.
(12) The heading for clause (ii) of section
168(k)(2)(B) of such Code is amended by striking
‘‘PRE-JANUARY 1, 2005’’ and inserting ‘‘PRE-JANUARY
1, 2009’’.
(d) EFFECTIVE DATE.—The amendments made by this
section shall apply to property placed in service after De-
cember 31, 2007, in taxable years ending after such date.
TITLE II—HOUSING GSE AND
FHA LOAN LIMITS
SEC. 201. TEMPORARY CONFORMING LOAN LIMIT INCREASE
FOR FANNIE MAE AND FREDDIE MAC.
(a) INCREASE OF HIGH COST AREAS LIMITS FOR
HOUSING GSES.—For mortgages originated during the pe-
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riod beginning on July 1, 2007, and ending at the end of
December 31, 2008:
(1) FANNIE MAE.—With respect to the Federal
National Mortgage Association, notwithstanding sec-
tion 302(b)(2) of the Federal National Mortgage Asso-
ciation Charter Act (12 U.S.C. 1717(b)(2)), the limi-
tation on the maximum original principal obligation
of a mortgage that may be purchased by the Associa-
tion shall be the higher of—
(A) the limitation for 2008 determined
under such section 302(b)(2) for a residence of
the applicable size; or
(B) 125 percent of the area median price
for a residence of the applicable size, but in no
case to exceed 175 percent of the limitation for
2008 determined under such section 302(b)(2) for
a residence of the applicable size.
(2) FREDDIE MAC.—With respect to the Federal
Home Loan Mortgage Corporation, notwithstanding
section 305(a)(2) of the Federal Home Loan Mortgage
Corporation Act (12 U.S.C. 1454(a)(2)), the limita-
tion on the maximum original principal obligation of
a mortgage that may be purchased by the Corporation
shall be the higher of—
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(A) the limitation determined for 2008
under such section 305(a)(2) for a residence of
the applicable size; or
(B) 125 percent of the area median price
for a residence of the applicable size, but in no
case to exceed 175 percent of the limitation deter-
mined for 2008 under such section 305(a)(2) for
a residence of the applicable size.
(b) DETERMINATION OF LIMITS.—The areas and area
median prices used for purposes of the determinations
under subsection (a) shall be the areas and area median
prices used by the Secretary of Housing and Urban Devel-
opment in determining the applicable limits under section
202 of this title.
(c) RULE OF CONSTRUCTION.—A mortgage originated
during the period referred to in subsection (a) that is eligi-
ble for purchase by the Federal National Mortgage Associa-
tion or the Federal Home Loan Mortgage Corporation pur-
suant to this section shall be eligible for such purchase for
the duration of the term of the mortgage, notwithstanding
that such purchase occurs after the expiration of such pe-
riod.
(d) EFFECT ON HOUSING GOALS.—Notwithstanding
any other provision of law, mortgages purchased in accord-
ance with the increased maximum original principal obli-
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gation limitations determined pursuant to this section shall
not be considered in determining performance with respect
to any of the housing goals established under section 1332,
1333, or 1334 of the Housing and Community Development
Act of 1992 (12 U.S.C. 4562–4), and shall not be considered
in determining compliance with such goals pursuant to sec-
tion 1336 of such Act (12 U.S.C. 4566) and regulations,
orders, or guidelines issued thereunder.
(e) SENSE OF CONGRESS.—It is the sense of the Con-
gress that the securitization of mortgages by the Federal Na-
tional Mortgage Association and the Federal Home Loan
Mortgage Corporation plays an important role in providing
liquidity to the United States housing markets. Therefore,
the Congress encourages the Federal National Mortgage As-
sociation and the Federal Home Loan Mortgage Corpora-
tion to securitize mortgages acquired under the increased
conforming loan limits established in this section, to the ex-
tent that such securitizations can be effected in a timely
and efficient manner that does not impose additional costs
for mortgages originated, purchased, or securitized under
the existing limits or interfere with the goal of adding li-
quidity to the market.
SEC. 202. TEMPORARY LOAN LIMIT INCREASE FOR FHA.
(a) INCREASE
OF HIGH-COST AREA LIMIT.—For
mortgages for which the mortgagee has issued credit ap-
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proval for the borrower on or before December 31, 2008, sub-
paragraph (A) of section 203(b)(2) of the National Housing
Act (12 U.S.C. 1709(b)(2)(A)) shall be considered (except
for purposes of section 255(g) of such Act (12 U.S.C. 1715z–
20(g))) to require that a mortgage shall involve a principal
obligation in an amount that does not exceed the lesser of—
(1) in the case of a 1-family residence, 125 per-
cent of the median 1-family house price in the area,
as determined by the Secretary; and in the case of a
2-, 3-, or 4-family residence, the percentage of such
median price that bears the same ratio to such me-
dian price as the dollar amount limitation deter-
mined for 2008 under section 305(a)(2) of the Federal
Home Loan Mortgage Corporation Act (12 U.S.C.
1454(a)(2)) for a 2-, 3-, or 4-family residence, respec-
tively, bears to the dollar amount limitation deter-
mined for 2008 under such section for a 1-family res-
idence; or
(2) 175 percent of the dollar amount limitation
determined for 2008 under such section 305(a)(2) for
a residence of the applicable size (without regard to
any authority to increase such limitation with respect
to properties located in Alaska, Guam, Hawaii, or the
Virgin Islands);
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(c) PUBLICATION OF AREA MEDIAN PRICES AND LOAN
LIMITS.—The Secretary of Housing and Urban Develop-
ment shall publish the median house prices and mortgage
principal obligation limits, as revised pursuant to this sec-
tion, for all areas as soon as practicable, but in no case
more than 30 days after the date of the enactment of this
Act. With respect to existing areas for which the Secretary
has not established area median prices before such date of
enactment, the Secretary may rely on existing commercial
data in determining area median prices and calculating
such revised principal obligation limits.
TITLE III—EMERGENCY
DESIGNATION
SEC. 301. EMERGENCY DESIGNATION.
For purposes of Senate enforcement, all provisions of
this Act are designated as emergency requirements and nec-
essary to meet emergency needs pursuant to section 204 of
S. Con. Res. 21 (110th Congress), the concurrent resolution
on the budget for fiscal year 2008.
Attest:
Secretary.