FHFA to Increase Multifamily Loan Caps for GSEs

The Federal Housing Finance Agency announced today that it will raise Fannie Mae and Freddie Mac’s 2022 caps for multifamily lending to $78 billion for each GSE—up from $70 billion in 2021—for a combined total of $156 billion.

FHFA now directs that at least 50% of the GSEs’ multifamily business be mission-driven, affordable housing. It will also require at least 25% of the GSEs’ multifamily business to be affordable to residents at or below 60% of area median income, up from 20% in 2021.

Additionally, FHFA has also made changes to certain definitions of “multifamily mission-driven affordable housing” in Appendix A of its conservatorship scorecard. In 2022, FHFA will allow loans on affordable units in cost-burdened renter markets and loans to finance energy or water efficiency improvements with units affordable at or below 60% of AMI to be classified as mission-driven.