The 2021 multifamily loan purchase caps for Fannie Mae and Freddie Mac will be $140 billion – or $70 billion for each Fannie and Freddie, the Federal Housing Finance Agency announced Tuesday.
The $140 billion will support the multifamily market, and at least 50 percent of Fannie and Freddie’s multifamily loans are required to be used for affordable housing.
“Multifamily housing is a critical component of the nation’s housing supply and especially of its affordable housing stock. As we continue to address the shortage of affordable housing, especially amid the COVID crisis, FHFA will keep a close eye on the multifamily caps to ensure that they are sufficient and serve to increase the supply of affordable housing but do not crowd out private capital,” FHFA Director Mark Calabria said.
Additionally, for the first time, affordable housing manufactured housing communities “must either be resident/government/nonprofit-owned or must have tenant pad lease protections to be counted as mission-driven, affordable housing,” FHFA said in a statement.
“MBA is pleased to see FHFA’s continued commitment on providing liquidity to multifamily housing,” Mortgage Brokers Association President and CEO Bob Broeksmit said. “The $70 billion cap for each GSE aims to support all forms of finance without crowding out private capital. The caps direct additional focus to affordable housing finance, an important component of the ongoing economic recovery. We will be analyzing the specific components of the caps to understand how they will affect the GSEs’ mission and the ability of the overall multifamily finance sector to meet the market’s needs.
“If the pandemic’s impact on the market calls for a change, we agree that FHFA should adjust the cap and its requirements.”