The Federal Housing Finance Agency (FHFA) announced on Tuesday that Fannie Mae and Freddie Mac will have a combined multifamily loan purchase cap of $140 billion for 2024, with each GSE having a limit of $70 billion. To promote their commitment to affordable housing, FHFA has mandated that at least 50% of the GSEs’ multifamily business must be focused on mission-driven initiatives.
In addition, loans supporting workforce housing properties will not be subject to the volume caps in 2024. However, all other mission-driven loans will still need to adhere to the caps.
According to FHFA Director Sandra L. Thompson, these measures aim “to address the need for affordable rental housing.” She also believes that exempting workforce housing from volume caps will encourage borrowers to maintain affordable rents over an extended period.
Mortgage Bankers Association president and CEO Bob Broeksmit expressed support for these decisions by stating they are reasonable given current market conditions and high interest rates expected in 2024. He also appreciates FHFA’s flexibility in making adjustments if needed and believes exempting workforce housing loans from volume caps will make GSE financing more viable for providers during this time.
This announcement highlights FHFA’s efforts towards promoting accessible rental options while ensuring stability within the market environment without compromising affordability goals.
