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tions shall be adjusted effective January 1 of 
each year beginning with 2008, subject to the 
limitations in this paragraph. Each adjustment 
shall be made by adding to or subtracting from 
each such amount (as it may have been pre-
viously adjusted) a percentage thereof equal to 
the percentage increase or decrease, during the 
most recent 12-month or four-quarter period 
ending before the time of determining such an-
nual adjustment, in the housing price index 
maintained by the Director of the Federal 
Housing Finance Agency (pursuant to section 
1322 of the Housing and Community Develop-
ment Act of 1992 (12 U.S.C. 4541)).’’. 
(2) HIGH-COST AREA LIMIT.—Section 302(b)(2) 
of the Federal National Mortgage Association Char-
ter Act is (12 U.S.C. 1717(b)(2)) is amended by 
adding after the period at the end the following: 
‘‘Such foregoing limitations shall also be increased 
with respect to properties of a particular size located 
in any area for which the median price for such size 
residence exceeds the foregoing limitation for such 
size residence, to the lesser of 150 percent of such 
foregoing limitation for such size residence or the 
amount that is equal to the median price in such 
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area for such size residence, except that, subject to 
the order, if any, issued by the Director of the Fed-
eral Housing Finance Agency pursuant to section 
133(d)(3) of the Federal Housing Finance Reform 
Act of 2007, such increase shall apply only with re-
spect to mortgages on which are based securities 
issued and sold by the corporation.’’. 
(b) FREDDIE MAC.— 
(1) GENERAL LIMIT.—Section 305(a)(2) of the 
Federal Home Loan Mortgage Corporation Act (12 
U.S.C. 1454(a)(2)) is amended— 
(A) in the 3rd sentence, by striking ‘‘the 
Resolution Trust Corporation,’’; and 
(B) by striking the 6th and 7th sentences 
and inserting the following new sentences: ‘‘For 
2007, 
such 
limitations 
shall 
not 
exceed 
$417,000 for a mortgage secured by a single- 
family residence, $533,850 for a mortgage se-
cured by a 2-family residence, $645,300 for a 
mortgage secured by a 3-family residence, and 
$801,950 for a mortgage secured by a 4-family 
residence, except that such maximum limita-
tions shall be adjusted effective January 1 of 
each year beginning with 2008, subject to the 
limitations in this paragraph. Each adjustment 
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shall be made by adding to or subtracting from 
each such amount (as it may have been pre-
viously adjusted) a percentage thereof equal to 
the percentage increase or decrease, during the 
most recent 12-month or four-quarter period 
ending before the time of determining such an-
nual adjustment, in the housing price index 
maintained by the Director of the Federal 
Housing Finance Agency (pursuant to section 
1322 of the Housing and Community Develop-
ment Act of 1992 (12 U.S.C. 4541)).’’ 
(2) HIGH-COST AREA LIMIT.—Section 305(a)(2) 
of the Federal Home Loan Mortgage Corporation 
Act is amended by adding after the period at the 
end the following: ‘‘Such foregoing limitations shall 
also be increased with respect to properties of a par-
ticular size located in any area for which the median 
price for such size residence exceeds the foregoing 
limitation for such size residence, to the lesser of 
150 percent of such foregoing limitation for such 
size residence or the amount that is equal to the me-
dian price in such area for such size residence, ex-
cept that, subject to the order, if any, issued by the 
Director of the Federal Housing Finance Agency 
pursuant to section 133(d)(3) of the Federal Hous-
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ing Finance Reform Act of 2007, such increase shall 
apply only with respect to mortgages on which are 
based securities issued and sold by the Corpora-
tion.’’. 
(c) HOUSING PRICE INDEX.—Subpart A of part 2 of 
subtitle A of title XIII of the Housing and Community 
Development Act of 1992 (as amended by the preceding 
provisions of this Act) is amended by inserting after sec-
tion 1321 (as added by section 132 of this Act) the fol-
lowing new section: 
‘‘SEC. 1322. HOUSING PRICE INDEX. 
‘‘(a) IN GENERAL.—The Director shall establish and 
maintain a method of assessing the national average 1- 
family house price for use for adjusting the conforming 
loan limitations of the enterprises. In establishing such 
method, the Director shall take into consideration the 
monthly survey of all major lenders conducted by the Fed-
eral Housing Finance Agency to determine the national 
average 1-family house price, the House Price Index main-
tained by the Office of Federal Housing Enterprise Over-
sight of the Department of Housing and Urban Develop-
ment before the effective date under section 185 of the 
Federal Housing Finance Reform Act of 2007, any appro-
priate house price indexes of the Bureau of the Census 
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of the Department of Commerce, and any other indexes 
or measures that the Director considers appropriate. 
‘‘(b) GAO AUDIT.— 
‘‘(1) IN GENERAL.—At such times as are re-
quired under paragraph (2), the Comptroller Gen-
eral of the United States shall conduct an audit of 
the methodology established by the Director under 
subsection (a) to determine whether the methodology 
established is an accurate and appropriate means of 
measuring changes to the national average 1-family 
house price. 
‘‘(2) TIMING.—An audit referred to in para-
graph (1) shall be conducted and completed not later 
than the expiration of the 180-day period that be-
gins upon each of the following dates: 
‘‘(A) ESTABLISHMENT.—The date upon 
which such methodology is initially established 
under subsection (a) in final form by the Direc-
tor. 
‘‘(B) MODIFICATION
OR
AMENDMENT.— 
Each date upon which any modification or 
amendment to such methodology is adopted in 
final form by the Director. 
‘‘(3) REPORT.—Within 30 days of the comple-
tion of any audit conducted under this subsection, 
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the Comptroller General shall submit a report detail-
ing the results and conclusions of the audit to the 
Director, the Committee on Financial Services of the 
House of Representatives, and the Committee on 
Banking, Housing, and Urban Affairs of the Sen-
ate.’’. 
(d) CONDITIONS ON CONFORMING LOAN LIMIT FOR 
HIGH-COST AREAS.— 
(1) STUDY.—The Director of the Federal 
Housing Finance Agency shall conduct a study 
under this subsection during the six-month period 
beginning on the effective date under section 185 of 
this Act. 
(2) ISSUES.—The study under this subsection 
shall determine— 
(A) the effect that restricting the con-
forming loan limits for high-cost areas only to 
mortgages on which are based securities issued 
and sold by the Federal National Mortgage As-
sociation and the Federal Home Loan Mortgage 
Corporation (as provided in the last sentence of 
section 302(b)(2) of the Federal National Mort-
gage Association Charter Act and the last sen-
tence of section 305(a)(2) of the Federal Home 
Loan Mortgage Corporation Act, pursuant to 
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the amendments made by subsections (a)(2) 
and (b)(2) of this section) would have on the 
cost to borrowers for mortgages on housing in 
such high-cost areas; 
(B) the effects that such restrictions would 
have on the availability of mortgages for hous-
ing in such high-cost areas; and 
(C) the extent to which the Federal Na-
tional Mortgage Association and the Federal 
Home Loan Mortgage Corporation will be able 
to issue and sell securities based on mortgages 
for housing located in such high-cost areas. 
(3) DETERMINATION.— 
(A) IN GENERAL.—Not later than the ex-
piration of the six-month period specified in 
paragraph (1), the Director of the Federal 
Housing Finance Agency shall make a deter-
mination, based on the results of the study 
under this subsection, of whether the restriction 
of conforming loan limits for high-cost areas 
only to mortgages on which are based securities 
issued and sold by the Federal National Mort-
gage Association and the Federal Home Loan 
Mortgage Corporation (as provided in the 
amendments made by subsections (a)(2) and 
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(b)(2) of this section) will result in an increase 
in the cost to borrowers for mortgages on hous-
ing in such high-cost areas. 
(B) ORDER.—If such determination is that 
costs to borrowers on housing in such high-cost 
areas will be increased by such restrictions, the 
Director may issue an order terminating such 
restrictions, in whole or in part. 
(4) PUBLICATION.—Not later than the expira-
tion of the six-month period specified in paragraph 
(1), the Director of the Federal Housing Finance 
Agency shall cause to be published in the Federal 
Register— 
(A) a report that— 
(i) describes the study under this sub-
section; and 
(ii) sets forth the conclusions of the 
study regarding the issues to be deter-
mined under paragraph (2); and 
(B) notice of the determination of the Di-
rector under paragraph (3); and 
(C) the order of the Director under para-
graph (3). 
(5) DEFINITION.—For purposes of this sub-
section, the term ‘‘conforming loan limits for high- 
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cost areas’’ means the dollar amount limitations ap-
plicable under the section 302(b)(2) of the Federal 
National Mortgage Association Charter Act and sec-
tion 305(a)(2) of the Federal Home Loan Mortgage 
Corporation Act (as amended by subsections (a) and 
(b) of this section) for areas described in the last 
sentence of such sections (as so amended). 
SEC. 134. ANNUAL HOUSING REPORT REGARDING REGU-
LATED ENTITIES. 
(a) IN GENERAL.—The Housing and Community De-
velopment Act of 1992 is amended by striking section 
1324 (12 U.S.C. 4544) and inserting the following new 
section: 
‘‘SEC. 1324. ANNUAL HOUSING REPORT REGARDING REGU-
LATED ENTITIES. 
‘‘(a) IN GENERAL.—After reviewing and analyzing 
the reports submitted under section 309(n) of the Federal 
National Mortgage Association Charter Act, section 
307(f) of the Federal Home Loan Mortgage Corporation 
Act, and section 10(j)(11) of the Federal Home Loan 
Bank Act (12 U.S.C. 1430(j)(11)), the Director shall sub-
mit a report, not later than October 30 of each year, to 
the Committee on Financial Services of the House of Rep-
resentatives and the Committee on Banking, Housing, and 
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Urban Affairs of the Senate, on the activities of each regu-
lated entity. 
‘‘(b) CONTENTS.—The report shall— 
‘‘(1) discuss the extent to which— 
‘‘(A) each enterprise is achieving the an-
nual housing goals established under subpart B 
of this part; 
‘‘(B) each enterprise is complying with sec-
tion 1337; 
‘‘(C) each Federal home loan bank is com-
plying with section 10(j) of the Federal Home 
Loan Bank Act; and 
‘‘(D) each regulated entity is achieving the 
purposes of the regulated entity established by 
law; 
‘‘(2) aggregate and analyze relevant data on in-
come to assess the compliance by each enterprise 
with the housing goals established under subpart B; 
‘‘(3) aggregate and analyze data on income, 
race, and gender by census tract and other relevant 
classifications, and compare such data with larger 
demographic, housing, and economic trends; 
‘‘(4) examine actions that— 
‘‘(A) each enterprise has undertaken or 
could undertake to promote and expand the an-
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