The Federal Housing Finance Agency (FHFA) announced the multifamily loan acquisition volume caps for the GSEs in 2022. Fannie Mae and Freddie Mac (the Enterprises) will be $78 billion for each Enterprise, for a combined total of $156 billion to support the multifamily market. The 2022 caps, which increased from $70 billion for each Enterprise in 2021, are based on FHFA’s projections of the overall growth of the multifamily originations market. Some highlights from the release:
- At least 50 percent of the Enterprises’ multifamily business be mission-driven affordable housing. This is the same as the 2021 requirement.
- The percentage of units that must come from units affordable to residents at 60 percent area median income (AMI) or below has increased from 20 to 25 percent.
- FHFA has changed certain definitions of multifamily “mission-driven” affordable housing to include loans on affordable units in cost-burdened rental markets and loans to finance energy or water efficiency improvements with units affordable at or below 60 percent of AMI.
FHFA has indicated that they will continue to monitor the impact of COVID-19 on the multifamily mortgage market and may adjust the multifamily caps if warranted, but to prevent market disruption, will not reduce them.