Skip to main content

GSEs Return to LIHTC Market

Phil Hall
Nov 17, 2017
The delinquency rate for mortgage loans on one- to four-unit residential properties declined to a seasonally adjusted rate of 4.06 percent of all loans outstanding at the end of the fourth quarter of 2018

The Federal Housing Finance Agency (FHFA) is shifting its policy by enabling Fannie Mae and Freddie Mac (the Enterprises) to re-enter the Low Income Housing Tax Credit (LIHTC) market as equity investors on a limited basis.
 
The FHFA explained that this change is based on the government-sponsored enterprises’ (GSEs) mission to support affordable housing. Each GSE will be subject to an annual investment limit of $500 million, less than a five percent market share for each. Any investments above $300 million in a given year must be in areas identified by FHFA as markets that have difficulty attracting investors.
 
“This decision demonstrates our commitment to supporting affordable rental housing in a controlled and thoughtful manner intended to stabilize the market and not to compete with private investors,” said FHFA Director Mel Watt. “Most of the Enterprises' investments will be used to facilitate transactions that support underserved markets and complement our Duty to Serve,” said FHFA Director Mel Watt, who added that his agency will evaluate the GSEs’ participation in the LIHTC equity market on an annual basis.
 
Mortgage Bankers Association (MBA) President and CEO David H. Stevens took to Twitter to respond to the news, tweeting: “Wow, GSE’s back into LIHTC.”

 
Published
Nov 17, 2017
loanDepot And mellohome Introduce Home Services Bundle

loanDepot, Inc. and its sister company mellohome are launching a proprietary bundle of home buying and selling services.

Industry News
Jul 30, 2021
Gateway Mortgage Surpasses 165 Mortgage Centers With 10 New Additions

Gateway Mortgage reported significant growth in the company, prompting it to open 10 new locations across Colorado, Idaho, Oklahoma, Texas, Oregon, and Wyoming.

Industry News
Jul 30, 2021
FHFA Requires 30-Day Notice Prior To Eviction

Wednesday, the Federal Housing Finance Agency (FHFA) announced that tenants of multi-family properties must be given 30 days notice to vacate before the tenant is required to leave the premise.

Industry News
Jul 29, 2021
Houston-Based Stewart Acquires Title First Agency

Ohio-Based Agency Has 20 Offices And Operates in 32 States

Industry News
Jul 28, 2021
Planet Home Lending Reports Total Origination Volume Of $6.8B In Q2 2021

Planet Home Lending's total origination volume reached $6.8 billion in Q2 2021, up 77% from $3.9 billion in Q2 2020.

Industry News
Jul 22, 2021
FHFA Ends Controversial Refinance Fee

The FHFA announced that Fannie Mae and Freddie Mac will eliminate the Adverse Market Refinance Fee for loan deliveries, starting August 1, 2021.

Analysis and Data
Jul 19, 2021