MAXIMUM PRINCIPAL LOAN OBLIGATION.

SEC. 2112. MAXIMUM PRINCIPAL LOAN OBLIGATION.(a) In General.—Paragraph (2) of section 203(b) of the National Housing Act (12 U.S.C. 1709(b)(2)) is amended—(1) by striking subparagraphs (A) and (B) and inserting the following:“(A) not to exceed the lesser of—“(i) in the case of a 1-family residence, 115 percent of the median 1-family house price in the area, as determined by the Secretary; and in the case of a 2-, 3-, or 4-family residence, the percentage of such median price that bears the same ratio to such median price as the dollar amount limitation determined under the sixth sentence of section 305(a)(2) of the Federal Home Loan Mortgage Corporation Act (12 U.S.C. 1454(a)(2)) for a 2-, 3-, or 4-family residence, respectively, bears to the dollar amount limitation determined under such section for a 1-family residence; or122 STAT. 2831“(ii) 150 percent of the dollar amount limitation determined under the sixth sentence of such section 305(a)(2) for a residence of applicable size;except that the dollar amount limitation in effect under this subparagraph for any size residence for any area may not be less than the greater of: (I) the dollar amount limitation in effect under this section for the area on October 21, 1998; or (II) 65 percent of the dollar amount limitation determined under the sixth sentence of such section 305(a)(2) for a residence of the applicable size; and“(B) not to exceed 100 percent of the appraised value of the property.”; and(2) in the matter following subparagraph (B), by striking the second sentence (relating to a definition of “average closing cost”) and all that follows through “section 3103A(d) of title 38, United States Code.”.(b) Treatment of Up-Front Premiums.—Section 203(d) of the National Housing Act (12 U.S.C. 1709(d)) is amended—(1) by striking “Notwithstanding any” and inserting the following: “Except as provided in paragraph (2) of this subsection, notwithstanding”;(2) by inserting “(1)” after “(d)”; and(3) by adding at the end the following new paragraph:“(2) The maximum amount of a mortgage determined under subsection (b)(2)(B) of this section may not be increased as provided in paragraph (1).”.(c) Effective Date.— The amendments made by subsection (a) shall take effect upon the expiration of the date described in section 202(a) of the Economic Stimulus Act of 2008 (Public Law 110–185; 122 Stat. 620).