FHFA Announces $70 Billion Multifamily Loan Purchase Cap for Fannie Mae, Freddie Mac

by Katie Sloan

Washington, D.C. — The Federal Housing Finance Agency (FHFA) has announced that the multifamily loan purchase caps for Fannie Mae and Freddie Mac in 2024 will be $70 billion for each enterprise, for a combined total of $140 billion. At least 50 percent of each enterprise’s multifamily business is required to be mission-driven, affordable housing. Only loans classified as supporting workforce housing properties in Appendix A of the Conservatorship Scorecard will be exempt from volume caps. “The 2024 multifamily loan caps, coupled with the exemption for workforce housing properties from the caps, will promote the enterprises’ continued strong commitment to addressing the need for affordable rental housing,” says Washington, D.C.-based FHFA Director Sandra Thompson. “The workforce housing exemption should encourage conventional borrowers to commit to preserving rents at affordable levels for extended periods of time.” The FHFA will monitor the market and increase caps if necessary to ensure that Fannie Mae and Freddie Mac continue to provide sufficient liquidity and support in the multifamily mortgage market. If the FHFA determines that the actual size of the 2024 market is smaller than initially projected, caps will not be reduced in an effort to prevent market disruption. 

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