MAXIMUM MORTGAGE AMOUNT.

SEC. 503. MAXIMUM MORTGAGE AMOUNT. (a) In General.—The first sentence of section 203(b)(2) of the National Housing Act (12 U.S.C. 1709(b)(2)) is amended to read as follows: “Involve a principal obligation (including such initial service charges, appraisal, inspection, and other fees as the Secretary shall approve) in an amount— “(A) not to exceed the lesser of— “(i) in the case of a 1-family residence, 95 percent of the median 1-family house price in the area, as deter-mined by the Secretary; in the case of a 2-family residence, 107 percent of such median price; in the case of a 3- family residence, 130 percent of such median price; or in the case of a 4-family residence, 150 percent of such median price; or “(ii) 75 percent of the dollar amount limitation deter-mined under section 305(a/2) of the Federal Home Loan Mortgage Corporation Act (as in effect on September 30, 1992) for a residence of the applicable size; except that the applicable dollar amount limitation in effect for any area under this subparagraph (A) may not be less than the dollar amount limitation in effect under this section for the area on May 12, 1992; and “(B) except as otherwise provided in this paragraph (2), not to exceed an amount equal to the sum of— “(i) 97 percent of $25,000 of the appraised value of the property, as of the date the mortgage is accepted for insurance; “(ii) 95 percent of such value in excess of $25,000 but not in excess of $125,000; and “(iii) 90 percent of such value in excess of $125,000.”. (b) Applicability.—The amendment made by subsection (a) shall apply only to mortgages executed on or after January 1, 1993. (c) Conforming Amendments.— (1) Title I.—Loans.— Notwithstanding any other provision of law, section 2(b)(1) of the National Housing Act (12 U.S.C. I703(b)(1) is amended by striking subparagraphs (C), (D), and (E) and inserting the following new subparagraphs: “(C) $48,600 if made for the purpose of financing the purchase of a manufactured home; “(D) $64,800 if made for the purpose of financing the Íiurchase of a manufactured home and a suitably developed lot on which to place the home; and “(E) $16,200 if made for the purpose of financing the purchase, by an owner of a manufactured home which is the principal residence of that owner, of a suitably developed lot on which to place that manufactured home, and if the owner certifies that he or she will place the manufactured home on the lot acquired with such loan within 6 months after the date of such loan.”. (2) Home equity conversion mortgages for elderly homeowners.—Section 255(g) of the National Housing Act (12 U.S.C. 1715z-20(g)) is amended by striking “for a 1-family residence” and inserting “for 1-family residences in the area 106 STAT. 3780in which the dwelling subject to the mortgage under this section is located”, (3) RTC affordable housing program.—Subparagraphs (D)(h) and (G)(II) of section 21A(c)(9) of the Federal Home Loan Bank Act (12 U.S.C. 1441a(c)(9)) are each amended by striking “the applicable dollar amount” and all that follows through “areas)” and inserting the following: “$67,500 in the case of a 1-family residence, $76,000 in the case of a 2-family residence, $92,000 in the case of a 3-family residence, and $107,000 in the case of a 4-family residence”. (4) FDIC affordable housing program.— Paragraphs (4)(B) and (7)(B) of section 40(p) of the Federal Deposit Insurance Act (12 U.S.C. 1831q(p)) are each amended to read as follows: “(B) that has an appraised value that does not exceed the amount provided in section 203(b)(2)(A) of the National Housing Act except that such amount shall not exceed $101,250 in the case of a 1-family residence, $114,000 in the case of a 2-family residence, $138,000 in the case of a 3-family residence, and $160,000 in the case of a 4-family residence.” (d) GAO Study on FHA Loan Limits and GSE Conforming Loan Limits.— (1) In general.—The Comptroller General of the United States shall submit to the Congress, on or before September 1, 1993, a report which evaluates the methodology used to establish the annual conforming loan limits for the secondary market, pursuant to section 305(a)(2) of the Federal Home Loan Mortgage Corporation Act, as well as the loan limits adjustments utilized under the single family mortgage insurance program under section 203 of the National Housing Act. (2) Contents.— The report shall— (A) evaluate the methodology used to determine the annual adjustment to the conforming loan limit, including the accuracy of using the Mortgage Interest Rate Survey (MIRS) in determining the median home sales price each year; (B) recommend any legislative or administrative changes to ensure that the conforming loan limits accurately reflect market dynamics; (C) assess the long-term consequences of indexing the mortgage limits utilized under the FHA section 203(b) single family mortgage insurance program to the annual adjustments to the conforming loan limits for the secondary market; (D) assess the impact of such annual adjustments on the ability of the FHA single family insurance program to serve low and moderate income borrowers; and (E) recommend alternative measures that could be employed to ensure that FHA can meet the needs of low and moderate income families in low and high cost areas of the country.