FHFA Raises Multifamily Caps by $6 Billion
November 19, 2024
On November 18, the Federal Housing Finance Agency (FHFA) announced that the 2025 multifamily loan purchase caps for Fannie Mae and Freddie Mac (the Enterprises) will be $73 billion for each Enterprise, for a combined total of $146 billion. Click here for CREFC’s Side-by-Side analysis of the 2025 Multifamily Caps.
Key Takeaways
- Caps Increased to $73 billion: FHFA stated that the increases from the $70 billion loan purchase caps per Enterprise in 2024 are “appropriate given current market forecasts.”
- FHFA will closely monitor the multifamily mortgage market and may increase the caps if necessary. Should the actual size of the 2025 market be smaller than initially projected, FHFA will not reduce the caps.
- 50% Mission-Driven Maintained: To maintain a strong emphasis on affordable housing and underserved markets, FHFA will continue to require that at least 50% of the Enterprises’ multifamily businesses be mission-driven, affordable housing.
- Workforce Housing Continues to Be Exempt from Caps: To further promote affordable housing preservation, loans classified as supporting workforce housing properties in Appendix A will remain exempt from the volume caps. (All other mission-driven loans remain subject to the volume caps.)
Why it matters: FHFA Director Sandra Thompson noted that the 2025 caps reflect the Enterprises’ “commitment to provide liquidity to make renting a home more affordable.” She further stated: