FHFA Adjusts Fannie Mae, Freddie Mac Lending Caps

The Federal Housing Finance Agency increased 2016 multifamily lending caps for Fannie Mae and Freddie Mac, raising them from $35 billion to $36.5 billion, effective immediately.  

FHFA called the adjustment “consistent” with its 2016 Scorecard for Fannie Mae and Freddie Mac, in which the regulatory agency committed to review multifamily finance market size estimates each quarter and increase the caps if warranted. The agency based the adjustment on increased estimates of the overall size of the 2016 multifamily finance market. MBA projects that multifamily lending will reach $273 billion this year compared to $201.7 billion in 2015.

The agency last raised the multifamily lending caps in May, from $31 billion to $35 billion. Loans in certain affordable and underserved market segments do not count toward the purchase caps, FHFA noted.

FHFA said the multifamily lending caps help maintain Fannie Mae and Freddie Mac’s presence as  multifamily finance market backstops while not impeding private capital participation. The agency called the 2016 multifamily finance market larger than estimated due to continuing property acquisitions and new apartment property deliveries as well as record loan maturities that require refinancing.  

The Federal Housing Finance Agency regulates Fannie Mae, Freddie Mac and the 11 Federal Home Loan Banks.