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 businesses must be focused on mission-driven initiatives.
Furthermore, loans supporting workforce housing properties will not be subject to the volume caps in 2024. However, all other mission-driven loans will still fall under these limits.
According to FHFA Director Sandra L. Thompson, “the combination of the 2024 multifamily loan caps and exemption for workforce housing properties aims to strengthen the Enterprises’ dedication towards providing affordable rental housing.” She also believes that this exemption will encourage conventional borrowers to maintain affordable rents for extended periods.
Mortgage Bankers Association President and CEO Bob Broeksmit expressed his support for these caps as they are reasonable considering market conditions and expected high interest rates in 2024. He also appreciates FHFA’s flexibility in making adjustments if needed and believes exempting loans supporting workforce housing from volume caps is beneficial for current providers seeking GSE financing options.
This announcement by FHFA sets out clear guidelines regarding multifamily lending by Fannie Mae and Freddie Mac without mentioning any specific brands or locations.
