I 
111TH CONGRESS 
1ST SESSION H. R. 2483 
To permanently increase the conforming loan limits for the Federal Home 
Loan Mortgage Corporation and the Federal National Mortgage Associa-
tion and the FHA maximum mortgage amount limitations. 
IN THE HOUSE OF REPRESENTATIVES 
MAY 19, 2009 
Mr. SHERMAN (for himself, Mr. GARY G. MILLER of California, Mr. FRANK 
of Massachusetts, Mr. GRAYSON, Mrs. HALVORSON, Ms. HARMAN, Ms. 
SPEIER, Mrs. CAPPS, Mr. CULBERSON, Mr. ROHRABACHER, Mr. 
CUMMINGS, Mr. SCHIFF, Mr. MCNERNEY, Mr. ABERCROMBIE, Mr. 
GEORGE MILLER of California, Mr. CARDOZA, Mrs. TAUSCHER, Mr. FIL-
NER, Mr. BILBRAY, Mr. HONDA, Mr. BERMAN, Mrs. BONO MACK, Mrs. 
MALONEY, Mr. CAMPBELL, Mr. ACKERMAN, Mr. GALLEGLY, Mr. 
DREIER, Mr. FARR, Mr. BISHOP of New York, Ms. WATERS, Ms. ESHOO, 
and Mr. HALL of New York) introduced the following bill; which was re-
ferred to the Committee on Financial Services 
A BILL 
To permanently increase the conforming loan limits for the 
Federal Home Loan Mortgage Corporation and the Fed-
eral National Mortgage Association and the FHA max-
imum mortgage amount limitations. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
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SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Increasing Homeown-
ership Opportunities Act’’. 
SEC. 2. PERMANENT CONFORMING LOAN LIMIT INCREASE 
FOR FREDDIE MAC AND FANNIE MAE. 
(a) FREDDIE MAC.— 
(1) CONFORMING
LOAN
LIMIT
INCREASE.— 
Paragraph (2) of section 305(a) of the Federal 
Home Loan Mortgage Corporation Act (12 U.S.C. 
1454(a)(2)) is amended— 
(A) by inserting ‘‘(A)’’ after ‘‘(2)’’; 
(B) in the first sentence, by redesignating 
clauses (A) through (C) as clauses (i) through 
(iii), respectively; 
(C) in the second sentence, by striking 
‘‘clause (A)’’ and inserting ‘‘clause (i)’’; 
(D) in the sixth sentence by striking ‘‘Jan-
uary 1 of each year beginning after the effective 
date of the Federal Housing Finance Regu-
latory Reform Act of 2008’’ and inserting 
‘‘January 1, 2010, and January 1 of each year 
thereafter’’; and 
(E) in the last sentence— 
(i) by striking ‘‘115 percent’’ each 
place it appears and inserting ‘‘125 per-
cent’’; and 
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(ii) by striking ‘‘150 percent’’ and in-
serting ‘‘175 percent’’. 
(2) DISCRETIONARY
AUTHORITY.—Paragraph 
(2) of section 305(a) of the Federal Home Loan 
Mortgage Corporation Act (12 U.S.C. 1454(a)(2)), 
as amended by paragraph (1), is further amended by 
adding at the end the following new subparagraphs: 
‘‘(B) Notwithstanding subparagraph (A) and 
subject to subparagraph (C), the Director of the 
Federal Housing Finance Agency may— 
‘‘(i) increase the limitation on the max-
imum original principal obligation of a mort-
gage that may be purchased by the Corporation 
that is otherwise in effect pursuant to the sixth 
sentence of subparagraph (A) with respect to 
any particular size or sizes of residences located 
in any particular area or areas by not more 
than $100,000; or 
‘‘(ii) increase, for any geographic area that 
is smaller than an area for which a dollar 
amount limitation on the principal obligation of 
a mortgage is established pursuant to this para-
graph, the limitation otherwise in effect for 
such size or sizes of residences for such sub- 
area or sub-areas, but in no case to an amount 
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that exceeds the maximum nationwide amount 
otherwise permitted under this subparagraph. 
‘‘(C) The Director of the Federal Housing Fi-
nance Agency may increase the limitation on the 
maximum original principal obligation of a mortgage 
for any area or sub-area pursuant to subparagraph 
(B) only if the Director makes a determination 
that— 
‘‘(i) such increase is warranted by higher 
median home prices in such area or sub-area; 
and 
‘‘(ii) such increase will have a significant 
impact on the cost or availability of mortgages 
having principal obligation amounts in the 
range of such increased limit. 
‘‘(D) Notwithstanding the calculation of the 
limitation on the maximum original principal obliga-
tion of a mortgage that may be purchased by the 
Corporation for an area pursuant to the last sen-
tence of subparagraph (A), if any recalculation of 
the local median home price for any area would oth-
erwise result in a decrease in the maximum original 
principal limitation for any size residence in any 
such area, the Director of the Federal Housing Fi-
nance Agency may prevent or limit a decrease in 
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such limitation from taking place for any such area. 
In taking such action, the Director shall consider 
such factors as market dislocations caused by a de-
crease in such limitation, the extent of the median 
home price decline, and the causes for such reduc-
tion in median home price.’’. 
(b) FANNIE MAE.— 
(1) CONFORMING
LOAN
LIMIT
INCREASE.— 
Paragraph (2) of section 302(b) of the Federal Na-
tional Mortgage Association Charter Act (12 U.S.C. 
1717(b)(2)) is amended— 
(A) by inserting ‘‘(A)’’ after ‘‘(2)’’; 
(B) in the second sentence, by redesig-
nating clauses (A) through (C) as clauses (i) 
through (iii), respectively; 
(C) in the third sentence, by striking 
‘‘clause (A)’’ and inserting ‘‘clause (i)’’; 
(D) in the seventh sentence by striking 
‘‘January 1 of each year beginning after the ef-
fective date of the Federal Housing Finance 
Regulatory Reform Act of 2008’’ and inserting 
‘‘January 1, 2010, and January 1 of each year 
thereafter’’; and 
(E) in the last sentence— 
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(i) by striking ‘‘115 percent’’ each 
place it appears and inserting ‘‘125 per-
cent’’; and 
(ii) by striking ‘‘150 percent’’ and in-
serting ‘‘175 percent’’. 
(2) DISCRETIONARY
AUTHORITY.—Paragraph 
(2) of section 302(b) of the Federal National Mort-
gage 
Association 
Charter 
Act 
(12 
U.S.C. 
1717(b)(2)), as amended by paragraph (1), is fur-
ther amended by adding at the end the following 
new subparagraphs: 
‘‘(B) Notwithstanding subparagraph (A) and 
subject to subparagraph (C), the Director of the 
Federal Housing Finance Agency may— 
‘‘(i) increase the limitation on the max-
imum original principal obligation of a mort-
gage that may be purchased by the corporation 
that is otherwise in effect pursuant to the sev-
enth sentence of subparagraph (A) with respect 
to any particular size or sizes of residences lo-
cated in any particular area or areas by not 
more than $100,000; or 
‘‘(ii) increase, for any geographic area that 
is smaller than an area for which a dollar 
amount limitation on the principal obligation of 
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a mortgage is established pursuant to this para-
graph, the limitation otherwise in effect for 
such size or sizes of residences for such sub- 
area or sub-areas, but in no case to an amount 
that exceeds the maximum nationwide amount 
otherwise permitted under this subparagraph. 
‘‘(C) The Director of the Federal Housing Fi-
nance Agency may increase the limitation on the 
maximum original principal obligation of a mortgage 
for any area or sub-area pursuant to subparagraph 
(B) only if the Director makes a determination 
that— 
‘‘(i) such increase is warranted by higher 
median home prices in such area or sub-area; 
and 
‘‘(ii) such increase will have a significant 
impact on the cost or availability of mortgages 
having principal obligation amounts in the 
range of such increased limit. 
‘‘(D) Notwithstanding the calculation of the 
limitation on the maximum original principal obliga-
tion of a mortgage that may be purchased by the 
corporation for an area pursuant to the last sentence 
of subparagraph (A), if any recalculation of the local 
median home price for any area would otherwise re-
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sult in a decrease in the maximum original principal 
limitation for any size residence in any such area, 
the Director of the Federal Housing Finance Agency 
may prevent or limit a decrease in such limitation 
from taking place for any such area.
In taking 
such action, the Director shall consider such factors 
as market dislocations caused by a decrease in such 
limitation, the extent of the median home price de-
cline, and the causes for such reduction in median 
home price.’’. 
SEC. 3. PERMANENT LOAN LIMIT INCREASE FOR FHA. 
(a) LOAN LIMIT INCREASE.—Subparagraph (A) of 
section 203(b)(2) of the National Housing Act (12 U.S.C. 
1709(b)(2)(A)) is amended— 
(1) in clause (i) by striking ‘‘115 percent’’ and 
inserting ‘‘125 percent’’; and 
(2) in clause (ii) by striking ‘‘150 percent’’ and 
inserting ‘‘175 percent’’. 
(b) DISCRETIONARY
AUTHORITY.—Subparagraph 
(A) of section 203(b)(2) of the National Housing Act (12 
U.S.C. 1709(b)(2)(A) is amended by inserting after ‘‘; 
and’’ at the end the following: ‘‘except that, if the Sec-
retary determines an increase is warranted by higher me-
dian home prices in an area or sub-area and such an in-
crease will have a significant impact on the cost or avail-
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ability of mortgages having principal obligation amounts 
in the range of an increased limit, the Secretary may in-
crease the maximum dollar amount limitation that is oth-
erwise in effect pursuant to the preceding provisions of 
this subparagraph with respect to any particular size or 
sizes of residences, or with respect to residences located 
in any particular area or areas, by not more than 
$100,000, or increase, for any geographic area that is 
smaller than an area for which a dollar amount limitation 
is determined pursuant to the preceding provisions of this 
subparagraph, the limitation otherwise in effect for such 
size or sizes of residences for such sub-area or sub-areas, 
but in no case to an amount that exceeds the maximum 
nationwide amount otherwise permitted under this sub-
paragraph; and except that notwithstanding the calcula-
tion of the maximum dollar amount limitation for any area 
pursuant to clause (i) of this subparagraph, if any recal-
culation of the local median home price for any area would 
otherwise result in a decrease in the maximum dollar 
amount limitation for any size residence in any such area, 
the Secretary, considering such factors as market disloca-
tions caused by a decrease in such dollar amount limita-
tion, the extent of the median home price decline, and the 
causes for such reduction in median home price, may pre-
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vent or limit a decrease in such dollar amount limitation 
from taking place for any such area; and’’. 
SEC. 4. EXISTING LOAN LIMITS. 
This Act may not be construed to affect the loan lim-
its for the Federal Home Loan Mortgage Corporation or 
the Federal National Mortgage Association in effect under 
section 1203 of the American Recovery and Reinvestment 
Act of 2009 (Public Law 111–5) or the FHA mortgage 
amount limitations in effect under section 1202 of such 
Act. 
SEC. 5. EFFECTIVE DATE. 
The amendments made by this Act shall take effect 
January 1, 2010. 
Æ 
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