The Federal Housing Finance Agency (FHFA) announced the 2024 multifamily loan purchase caps for Fannie Mae and Freddie Mac will be $70 billion for each government-sponsored enterprise (GSE), for a combined total of $140 billion to support the multifamily market.
FHFA said that it will require that at least 50% of the GSEs’ multifamily businesses be “mission-driven, affordable housing.” During 2024, loans classified as supporting workforce housing properties in Appendix A of the Conservatorship Scorecard will be exempt from the volume caps; all other mission-driven loans remain subject to the 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,” said FHFA Director Sandra L. Thompson. “The workforce housing exemption should encourage conventional borrowers to commit to preserving rents at affordable levels for extended periods of time.”
Mortgage Bankers Association President and CEO Bob Broeksmit welcomed the announcement.
“A cap of $70 billion for each of the GSEs is reasonable, given the challenging market conditions and high interest rate environment expected in 2024,” he said. “We appreciate FHFA’s ongoing flexibility should adjustments to the caps and mission-driven requirements be necessary and believe exempting loans supporting workforce housing from the cap levels will help to ensure GSE financing is a viable option for housing providers in the current environment. MBA supports a level playing field across various capital sources and will continue to work with FHFA, the GSEs, and other industry stakeholders on ways to increase affordable rental housing.”