The Federal Housing Finance Agency (FHFA) recently announced that it has increased the 2016 multifamily lending caps for Fannie Mae and Freddie Mac (the Enterprises) from $31 billion to $35 billion, effective immediately. The adjustment is consistent with FHFA’s 2016 Scorecard for the Enterprises in which FHFA committed to review the estimates for the size of the multifamily finance market each quarter and increase the caps, if warranted. The adjustment is based on increased estimates of the overall size of the 2016 multifamily finance market. As described in the Scorecard, loans in certain affordable and underserved market segments will continue to be excluded from the purchase caps.
“FHFA engaged in a thorough analysis of the multifamily market and determined that, to adjust to the realities of the market and ensure that Fannie Mae and Freddie Mac have the flexibility to continue supporting this important sector, an increase in the lending caps is warranted,” says FHFA Director Melvin L. Watt. “Supporting liquidity in the multifamily housing finance market remains a priority for FHFA and we will also continue to ensure that Fannie Mae and Freddie Mac maintain their strong support for financing of affordable and workforce housing.”
The multifamily lending caps are intended to further FHFA’s strategic goal of maintaining the presence of the Enterprises as a backstop for the multifamily finance market, while not impeding the participation of private capital. The 2016 multifamily finance market is larger than had been estimated due to continued high levels of property acquisitions and deliveries of newly constructed apartment units, as well as record levels of loan maturities that require refinancing.
For more information, visit www.fhfa.gov.