The Federal Housing Finance Agency (FHFA) has announced the 2023 multifamily loan purchase cap structure for both Fannie Mae and Freddie Mac (the Enterprises).

Loan purchase caps have been set to $75 billion for each government-sponsored Enterprise for a combined total of $150 billion for 2023. This equates to a 3.85 percent decrease compared to each Enterprises’ $78 billion cap from 2022 and signals the FHFA’s anticipation of a contracted multifamily market for the year ahead.

These new caps—like those from 2022—apply to all multifamily business with no exclusions. A summary of the changes is available in the chart below.

FHFA Cap Structure Comparison 2022-2023

Per GSE Cap$75B $78B
Per GSE Cap Per-Quarter$18.75B $19.5B
Total Cap$150B $156B
Total GSE Cap Per-Quarter$37.5B $39B
Mission-Driven Requirement50%50% 
Affordable at 60% of AMIn/a25%

The bulk of the changes for 2023 are with respect to affordable and workforce housing. The FHFA has directed that at least 50 percent of the Enterprises’ multifamily business must be for mission-driven, affordable housing. This mirrors the percentage required for 2022 and is in line with an ongoing focus on the needs of affordable housing and traditionally underserved markets.

Certain multifamily requirements for mission-driven, affordable housing have been updated, such as the removal of the requirement that 25 percent of the Enterprises’ multifamily business be affordable at 60 percent area median income.

The FHFA indicated that it will continue to monitor the multifamily mortgage market in order to ensure sufficient liquidity and support. Caps and mission-driven requirements will be updated as needed, however if the size of the 2023 market trends smaller than anticipated, the cap structure detailed above will not be reduced.

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.

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