November 18, 2020
As you may have seen, yesterday the Federal Housing Finance Agency (FHFA) announced a new cap structure and mission-driven requirements for our business. This mandate reduces Freddie Mac and Fannie Mae’s ability to purchase multifamily mortgages to $70 billion, or $17.5 billion average per quarter in 2021. In comparison, the cap ending this year was over five quarters, set at $100 billion or a $20 billion average per quarter.
Affordability will continue to be essential to our work, with “mission-driven” making up at least 50% of our volume in the year ahead. At least 20% of our volume will be more deeply affordable. The details can be found in FHFA’s Multifamily Caps Fact Sheet and updated Appendix A.
As in past years, we will be working with you in the coming weeks to align our offerings and business strategy with FHFA’s new requirements. In the year ahead, we’ll also be in continual communication with FHFA about market conditions as they work to determine if the data shows changes that warrant cap adjustments.
Nobody could have predicted 2020, and there is a lot of market uncertainty in the year ahead too. Regardless of how things change, our mission remains the same – we’ll continue working to provide stability, liquidity and affordability for the multifamily market.
We look forward to a continued strong partnership with all of you.
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