FHFA Announces 2023 Multifamily Loan Purchase Caps for Fannie Mae, Freddie Mac
The Federal Housing Finance Agency on Friday announced 2023 multifamily loan purchase caps for Fannie Mae and Freddie Mac will be $75 billion for each Enterprise (for a total of $150 billion).
FHFA maintained the requirement that 50 percent of the Enterprises’ business must be for mission-driven affordable housing and added a new mission-driven category for workforce housing properties. Also, consistent with MBA’s recommendations, FHFA removed the requirement that 25 percent of the Enterprises’ multifamily business be affordable at 60 percent of area median income or below to create more consistencies with the Enterprises’ housing goals.
MBA President & CEO Bob Broeksmit, CMB, issued the following statement:
“Given current market conditions and the expected decline in the multifamily originations market, FHFA’s slight decrease in next year’s caps is appropriate and ensures a level playing field across various capital sources.
“MBA commends FHFA for its continued commitment to affordable rental housing, including workforce housing, and for providing stable liquidity to the marketplace. We also appreciate FHFA’s flexibility should the caps need to be increased, and its decision to streamline certain mission-driven requirements.
“MBA looks forward to continuing its work with FHFA, the GSEs, and other stakeholders to increase the supply of affordable rental housing in communities across the country.”
MBA noted the caps are $3 billion less for each Enterprise compared to 2022, which reflects a likely reduction in overall multifamily mortgage activity in 2023. FHFA did note in the announcement that they will monitor the market and update the caps and mission-driven targets as needed (but will not reduce the caps).
MBA Senior Vice President of CREF Policy and Member Engagement Mike Flood said MBA will analyze FHFA’s announcement and communicate relevant information to MBA members.