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‘‘PART 2—PRODUCT APPROVAL BY DIRECTOR, 
CORPORATE GOVERNANCE, AND ESTABLISH-
MENT OF HOUSING GOALS’’; 
and 
(2) by striking sections 1321 and 1322. 
SEC. 132. REVIEW OF ENTERPRISE PRODUCTS. 
(a) IN GENERAL.—Part 2 of subtitle A of title XIII 
of the Housing and Community Development Act of 1992 
is amended by inserting before section 1323 (12 U.S.C. 
4543) the following new section: 
‘‘SEC. 1321. PRIOR APPROVAL AUTHORITY FOR PRODUCTS 
OF ENTERPRISES. 
‘‘(a) IN GENERAL.—The Director shall require each 
enterprise to obtain the approval of the Director for any 
product of the enterprise before initially offering the prod-
uct. 
‘‘(b) STANDARD FOR APPROVAL.—In considering any 
request for approval of a product pursuant to subsection 
(a), the Director shall make a determination that— 
‘‘(1) in the case of a product of the Federal Na-
tional Mortgage Association, the Director determines 
that the product is authorized under paragraph (2), 
(3), (4), or (5) of section 302(b) or section 304 of 
the Federal National Mortgage Association Charter 
Act, (12 U.S.C. 1717(b), 1719); 
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‘‘(2) in the case of a product of the Federal 
Home Loan Mortgage Corporation, the Director de-
termines that the product is authorized under para-
graph (1), (4), or (5) of section 305(a) of the Fed-
eral Home Loan Mortgage Corporation Act (12 
U.S.C. 1454(a)); 
‘‘(3) the product is in the public interest; 
‘‘(4) the product is consistent with the safety 
and soundness of the enterprise or the mortgage fi-
nance system; and 
‘‘(5) the product does not materially impair the 
efficiency of the mortgage finance system. 
‘‘(c) PROCEDURE FOR APPROVAL.— 
‘‘(1) SUBMISSION OF REQUEST.—An enterprise 
shall submit to the Director a written request for 
approval of a product that describes the product in 
such form as prescribed by order or regulation of the 
Director. 
‘‘(2) REQUEST FOR PUBLIC COMMENT.—Imme-
diately upon receipt of a request for approval of a 
product, as required under paragraph (1), the Direc-
tor shall publish notice of such request and of the 
period for public comment pursuant to paragraph 
(3) regarding the product, and a description of the 
product proposed by the request. The Director shall 
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give interested parties the opportunity to respond in 
writing to the proposed product. 
‘‘(3) PUBLIC COMMENT PERIOD.—During the 
30-day period beginning on the date of publication 
pursuant to paragraph (2) of a request for approval 
of a product, the Director shall receive public com-
ments regarding the proposed product. 
‘‘(4) OFFERING OF PRODUCT.— 
‘‘(A) IN
GENERAL.—Not later than 30 
days after the close of the public comment pe-
riod described in paragraph (3), the Director 
shall approve or deny the product, specifying 
the grounds for such decision in writing. 
‘‘(B) FAILURE TO ACT.—If the Director 
fails to act within the 30-day period described 
in subparagraph (A), the enterprise may offer 
the product. 
‘‘(d) EXPEDITED REVIEW.— 
‘‘(1) DETERMINATION AND NOTICE.—If an en-
terprise determines that any new activity, service, 
undertaking, or offering is not a product, as defined 
in subsection (f), the enterprise shall provide written 
notice to the Director prior to the commencement of 
such activity, service, undertaking, or offering. 
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‘‘(2) DIRECTOR DETERMINATION OF APPLICA-
BLE PROCEDURE.—Immediately upon receipt of any 
notice pursuant to paragraph (1), the Director shall 
make a determination under paragraph (3). 
‘‘(3) DETERMINATION
AND
TREATMENT
AS 
PRODUCT.—If the Director determines that any new 
activity, service, undertaking, or offering consists of, 
relates to, or involves a product— 
‘‘(A) the Director shall notify the enter-
prise of the determination; 
‘‘(B) the new activity, service, undertaking, 
or offering described in the notice under para-
graph (1) shall be considered a product for pur-
poses of this section; and 
‘‘(C) the enterprise shall withdraw its re-
quest or submit a written request for approval 
of the product pursuant to subsection (c). 
‘‘(e) CONDITIONAL APPROVAL.—The Director may 
conditionally approve the offering of any product by an 
enterprise, and may establish terms, conditions, or limita-
tions with respect to such product with which the enter-
prise must comply in order to offer such product. 
‘‘(f) DEFINITION
OF PRODUCT.—For purposes of 
this section, the term ‘product’ does not include— 
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‘‘(1) the automated loan underwriting system of 
an enterprise in existence as of the date of the en-
actment of the Federal Housing Finance Reform 
Act of 2007, including any upgrade to the tech-
nology, operating system, or software to operate the 
underwriting system; or 
‘‘(2) any modification to the mortgage terms 
and conditions or mortgage underwriting criteria re-
lating to the mortgages that are purchased or guar-
anteed by an enterprise: Provided, That such modi-
fications do not alter the underlying transaction so 
as to include services or financing, other than resi-
dential mortgage financing, or create significant new 
exposure to risk for the enterprise or the holder of 
the mortgage. 
‘‘(g) NO LIMITATION.—Nothing in this section shall 
be deemed to restrict— 
‘‘(1) the safety and soundness authority of the 
Director over all new and existing products or activi-
ties; or 
‘‘(2) the authority of the Director to review all 
new and existing products or activities to determine 
that such products or activities are consistent with 
the statutory mission of the enterprise.’’. 
(b) CONFORMING AMENDMENTS.— 
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(1) FANNIE
MAE.—Section 302(b)(6) of the 
Federal National Mortgage Association Charter Act 
(12 U.S.C. 1717(b)(6)) is amended— 
(A) by striking ‘‘implement any new pro-
gram’’ and inserting ‘‘initially offer any prod-
uct’’; 
(B) by striking ‘‘section 1303’’ and insert-
ing ‘‘section 1321(f)’’; and 
(C) by striking ‘‘before obtaining the ap-
proval of the Secretary under section 1322’’ 
and inserting ‘‘except in accordance with sec-
tion 1321’’. 
(2) FREDDIE MAC.—Section 305(c) of the Fed-
eral Home Loan Mortgage Corporation Act (12 
U.S.C. 1454(c)) is amended— 
(A) by striking ‘‘implement any new pro-
gram’’ and inserting ‘‘initially offer any prod-
uct’’; 
(B) by striking ‘‘section 1303’’ and insert-
ing ‘‘section 1321(f)’’; and 
(C) by striking ‘‘before obtaining the ap-
proval of the Secretary under section 1322’’ 
and inserting ‘‘except in accordance with sec-
tion 1321’’. 
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(3) 1992 ACT.—Section 1303 of the Housing 
and Community Development Act of 1992 (12 
U.S.C. 4502), as amended by section 2 of this Act, 
is further amended— 
(A) by striking paragraph (17) (relating to 
the definition of ‘‘new program’’); and 
(B) by redesignating paragraphs (18) 
through (23) as paragraphs (17) through (22), 
respectively. 
SEC. 133. CONFORMING LOAN LIMITS. 
(a) FANNIE MAE.— 
(1) GENERAL LIMIT.—Section 302(b)(2) of the 
Federal National Mortgage Association Charter Act 
(12 U.S.C. 1717(b)(2)) is amended— 
(A) in the 4th sentence, by striking ‘‘the 
Resolution Trust Corporation,’’; and 
(B) by striking the 7th and 8th 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-
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