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GSEs’ Multifamily Caps Expanded to $100B Each
The Federal Housing Finance Agency (FHFA) is expanding the caps for the multifamily businesses of Fannie Mae and Freddie Mac, while closing loopholes that allowed the GSEs to lend beyond their caps. The new caps are set at $100 billion apiece for Fannie and Freddie over the five quarters beginning Oct. 1, up from $35 billion each in 2018 and 2019, with no exclusions.
FHFA director Mark Calabria announced the new caps at the National Multifamily Housing Council’s fall meeting in Washington, D.C. The agency will also direct at least 37.5% of the GSEs’ businesses toward affordable housing.
“These new multifamily caps eliminate loopholes, provide ample support for the market without crowding out private capital, and significantly increase affordable housing support over previous levels,” said Calabria. “The Enterprises should also manage under the caps to provide consistent, stable liquidity to the market throughout the entire five-quarter period.”
Pictured, from left: NMHC vice chair David Schwartz and FHFA director Mark Calabria.
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