According to the FHFA, the caps are based on its projections for the overall size of multifamily originations market. The FHFA expects the 2019 market to be relatively flat compared to the market in 2018.
Also, the FHFA is increasing the requirements for exclusion from the multifamily cap loans that finance energy or water efficiency improvements through Fannie Mae’s Green Rewards and Freddie Mac’s Green Up/Green Up Plus programs. In 2019, multifamily loans that finance energy or water efficiency improvements must project a minimum 30 percent reduction in whole property energy and water consumption and a minimum of 15 percent of the reduction must be in energy consumption. FHFA is also adding a data collection requirement for all excluded Green Rewards and Green Up/Green Up Plus loans, which requires engagement of a third-party data collection firm prior to closing.