(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 section 
1321’’. 
(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 
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(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 resi-
dence, $533,850 for a mortgage secured by a 2- 
family residence, $645,300 for a mortgage se-
cured by a 3-family residence, and $801,950 for 
a mortgage secured by a 4-family residence, ex-
cept that such maximum limitations shall be ad-
justed 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 previously adjusted) a per-
centage thereof equal to the percentage increase 
or decrease, during the most recent 12-month or 
four-quarter period ending before the time of de-
termining such annual adjustment, in the hous-
ing price index maintained by the Director of 
the Federal Housing Finance Agency (pursuant 
to section 1322 of the Housing and Community 
Development Act of 1992 (12 U.S.C. 4541)).’’. 
(2) HIGH-COST AREA LIMIT.—Section 302(b)(2) 
of the Federal National Mortgage Association Charter 
Act is (12 U.S.C. 1717(b)(2)) is amended by adding 
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after the period at the end the following: ‘‘Such fore-
going 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 ex-
ceeds the foregoing limitation for such size residence, 
to the lesser of 150 percent of such foregoing limita-
tion for such size residence or the amount that is 
equal to the median price in such area for such size 
residence, except that, subject to the order, if any, 
issued by the Director of the Federal Housing Fi-
nance Agency pursuant to section 133(d)(3) of the 
Federal Housing Finance Reform Act of 2007, such 
increase shall apply only with respect to mortgages on 
which are based securities issued and sold by the cor-
poration.’’. 
(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 resi-
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dence, $533,850 for a mortgage secured by a 2- 
family residence, $645,300 for a mortgage se-
cured by a 3-family residence, and $801,950 for 
a mortgage secured by a 4-family residence, ex-
cept that such maximum limitations shall be ad-
justed 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 previously adjusted) a per-
centage thereof equal to the percentage increase 
or decrease, during the most recent 12-month or 
four-quarter period ending before the time of de-
termining such annual adjustment, in the hous-
ing price index maintained by the Director of 
the Federal Housing Finance Agency (pursuant 
to section 1322 of the Housing and Community 
Development 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 particular 
size located in any area for which the median price 
for such size residence exceeds the foregoing limitation 
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