The Federal Housing Finance Agency (FHFA) has announced the 2022 multifamily loan cap structure for Fannie Mae and Freddie Mac. Loan purchase caps have been set to $78 billion for each government-sponsored enterprise, a combined total of $156 billion for 2022. This equates to an 11.4% increase compared to each enterprise’s previous $70 billion cap ($140 billion total) for 2021. 

The FHFA will continue to require that at least 50% of the enterprises’ multifamily business be mission-driven, affordable housing. One adjustment for 2022 is that the FHFA will now require at least 25% of the enterprises’ multifamily business to be affordable to residents at or below 60% of area median income (AMI) – up from 20% in 2021. A summary of the changes can be found in the chart below. 

FHFA Cap Structure Comparison 2021-2022

Per GSE Cap$78B $70B
Per GSE Cap Per-Quarter$19.5B $17.5B
Total Cap$156B $140B
Total GSE Cap Per-Quarter$39B $35B
Mission-Driven Requirement50%50% 
Affordable at 60% of AMI25%20%

The updated cap structure will “assure that the enterprises’ multifamily businesses have a strong and growing commitment to affordable housing finance, particularly for residents and communities that are the most difficult to serve,” said FHFA Acting Director Sandra L. Thompson. 

Demonstrating that commitment, the FHFA has revised certain requirements for mission-driven affordable housing, specifically in regards to loans of affordable units in cost-burdened markets and for loans to finance energy or water efficiency improvements.

The FHFA also stated that it plans to continue to monitor the impacts of COVID-19 on the multifamily mortgage market, and will update caps and mission-driven requirements if adjustments are warranted. If the actual size of the 2022 market is smaller than projected, however, the cap structure described above will not be reduced. 

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