Section 1 Short title
This Act may be cited as the “Stabilizing FHA Loan Limit Calculations Act of 2014”.
Stabilizing FHA Loan Limit Calculations Act of 2014
A BILL
To ensure stability in FHA maximum mortgage amount limitations for areas experiencing decreases in median home prices.
Sec. 2 FHA maximum mortgage amount limitations
Paragraph (2) of section 203(b) of the National Housing Act (12 U.S.C. 1709(b)(2)) is amended—
in subparagraph (A)(i), by inserting before “; or” the following: “; except that with respect to 2014 and each year thereafter, the median house price for any size residence for an area shall, for purposes of this clause, be considered to be equal to the greatest median house price for such size residence for such area used by the Secretary for purposes of determining the dollar amount limitation on the principal obligation for purposes of this section for 2013 (pursuant to section 238 of Public Law 112–55; 125 Stat. 702), or for any year thereafter before the assignment of the Federal Housing Administration case number for the mortgage involved”; and
by adding at the end the following undesignated paragraph:
“Notwithstanding any other provision of law, if the Secretary determines, for any geographic area that is smaller than an area for which dollar amount limitations on the principal obligation of a mortgage are determined under this paragraph, that a higher such maximum dollar amount limitation is warranted for any particular size or sizes of residences in such sub-area by higher median home prices in such sub-area, the Secretary may increase the maximum dollar amount limitation for such size or sizes of residences for such sub-area that is otherwise in effect (including pursuant to the first sentence of this paragraph), but in no case to an amount that exceeds the amount specified in subparagraph (A)(ii) of this paragraph.”