The Federal Housing Finance Agency (FHFA) this week announced the 2024 multifamily loan purchase cap structure for both Fannie Mae and Freddie Mac (the Enterprises).
Loan purchase caps have been set to $70 billion for each government-sponsored Enterprise for a combined total of $140 billion. This is a decrease compared to 2023 when the caps were $75 billion each.
FHFA Cap Structure Comparison 2023-2024
|Per GSE Cap||$70B||$75B|
|Per GSE Cap Per-Quarter||$17.5B||$18.755B|
|Total GSE Cap Per-Quarter||$35B||$37.5B|
New this year, the FHFA is removing the loan cap for workforce housing as part of ongoing efforts to promote affordable housing preservation. All other mission-driven loans remain subject to volume caps. Like previous years, the FHFA has directed that at least 50% of the Enterprises’ multifamily business must be for mission-driven, affordable housing.
The FHFA indicated that it will continue to monitor the multifamily mortgage market to ensure sufficient liquidity and support. Caps and mission-driven requirements will be updated as needed, however if the size of the 2024 market trends smaller than anticipated, the cap structure detailed above will not be reduced. The purpose of the caps is to ensure the Enterprises support liquidity in the multifamily market, especially affordable housing, without crowding out private capital.
Lument’s commitment to affordable and workforce housing as well as to sustainability is reflected in the Enterprises’ caps for the year ahead. Accordingly, we look forward to leveraging our relationships with Fannie and Freddie, as well as our expertise, on our clients’ behalf.
For more information contact an originator below.