FHFA Announces New Multifamily Loan Purchase Caps

Posted on by Randolph Taylor

The Federal Housing Finance Agency (FHFA) recently announced new multifamily loan purchase caps for Fannie Mae and Freddie Mac. The two government-sponsored enterprises (GSEs) will be allowed to lend $100 billion each — $200 billion in all — to support the multifamily market. The new caps, which are in place from October 1 through the end of 2020, apply to all multifamily business with no exclusions.

FHFA will require at least 37.5 percent of Fannie and Freddie’s multifamily portfolio be directed at mission-driven, affordable housing. In addition, the FHFA is reclassifying loans in select rural regions and high-cost locations, making them eligible to count toward the new affordable housing goal. The former green loans program, which financed energy and water efficiency improvements, will now be considered the conventional business unless these projects adhere to other affordability requirements.

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