Rep. Gary Miller, R-Calif., introduced legislation Wednesday to curb efforts by the Department of Housing and Urban Development to lower Federal Housing Administration loan limits.
The bill takes aim at a December announcement by the FHA that it would reduce loan limits for some high-cost areas this year. Roughly 650 counties have been affected by the change, which went into effect in January.
The Stabilizing FHA Loan Limit Calculations Act would require the agency to use in its calculations for determining the limits a median home price value equal to at least the 2013 value. It would also grant HUD the authority to subdivide real estate markets and set different loan limits within a single county.
"This bipartisan legislation guarantees that thousands of first-time homebuyers across the Inland Empire will have the opportunity to own a home by providing access to low-downpayment financing that is affordable," Miller said in a press release.
Reps. Peter King, R-N.Y., Ken Calvert, R-Calif., Brad Sherman, D-Calif., Carolyn Maloney, D-N.Y., and Jerry McNerney, D-Calif., are co-sponsoring the bill.