Last month, the Federal Housing Finance Agency announced $70 billion in multifamily lending caps for Fannie Mae and Freddie Mac in 2021. In 2020, those caps were $80 billion each for Freddie and Fannie.
At least 50% of the GSE's loan originations must be dedicated to affordable housing, which is an increase from 37.5% in 2020. The caps apply to the four quarters in the 2021 calendar year, compared to five quarters totaling $100 billion in the previous cap, according to Marcus & Millichap.
The new lending caps come with a mandate that at least 20% of Fannie and Freddie multifamily lending target affordable housing for residents at 60% area median income or less. This ensures that the agencies will continue to finance communities for residents most in need of affordable housing options.
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Leslie Shaver
Les Shaver has been covering commercial and residential real estate for almost 20 years. His work has appeared in Multifamily Executive, Builder, units, Arlington Magazine in addition to GlobeSt.com and Real Estate Forum.
