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FHFA Adjusts Multifamily Lending Caps for 2018
The Federal Housing Finance Agency (FHFA) today announced that the 2018 multifamily lending caps for Fannie Mae and Freddie Mac will be $35 billion for each government-sponsored enterprise (GSE), down from this year’s cap of $36.5 billion.
The FHFA stated that its caps were based on projections of the overall size of the 2018 multifamily originations market, which the regulator forecast to be slightly smaller than that market in 2017. The FHFA added that it will review its estimates of the multifamily loan origination market size on a quarterly basis and, when applicable, will adjust the caps.
Furthermore, the FHFA noted in a statement that because “market support for affordable housing has been historically weak, FHFA will continue to exclude from the 2018 caps certain loans in the affordable and underserved market segments.” This will include loans to finance energy or water efficiency improvements and loans on affordable units in extremely high-cost markets.
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