FHFA to Increase Multifamily Loan Caps for GSEs, Eliminate Exclusions

The Federal Housing Finance Agency announced today that it will raise Fannie Mae and Freddie Mac’s caps for multifamily lending to $100 billion for each GSE. Although the change represents a significant increase from the 2018 limit of $35 billion per GSE, it now applies to all multifamily business with no exclusions. Previous caps excluded multifamily loans in designated affordable and underserved segments—and FHFA now directs that at least 37.5% of the GSEs’ multifamily business be mission-driven, affordable housing. The new caps apply to the five-quarter period Q4 2019-Q4 2020.