The Federal Housing Finance Agency (FHFA) has announced a revised cap structure on the multifamily businesses of Fannie Mae and Freddie Mac. The new multifamily loan purchase caps will be $100 billion for each, a combined total of $200 billion in support to the multifamily market, for the five-quarter period Q4 2019–Q4 2020. The new caps apply to all multifamily business, with no exclusions.
“Multifamily housing is a critical component of addressing our nation's shortage of affordable housing," said FHFA Director Mark Calabria. “These new multifamily caps eliminate loopholes, provide ample support for the market without crowding out private capital, and significantly increase affordable housing support over previous levels. The Enterprises should also manage under the caps to provide consistent, stable liquidity to the market throughout the entire five-quarter period.”
To ensure a strong focus on affordable housing and traditionally underserved markets, FHFA directs that at least 37.5 percent of the Enterprises' multifamily business be mission-driven, affordable housing. This new minimum of 37.5 percent responsibly assures that the Enterprises' multifamily businesses have a strong and growing commitment to affordable housing finance.
Loans that finance energy and water efficiency improvements will be considered conventional business, unless they meet other mission-driven affordability requirements (see revised Appendix A).