The Federal Housing Finance Agency (FHFA) announced on Wednesday that it has increased Fannie Mae’s and Freddie Mac’s 2016 multifamily lending caps from $31 billion to $35 billion, effective immediately.
FHFA adjusted the caps, which it set last May, after reviewing new estimates for the size of the multifamily finance market for the rest of 2016. FHFA stated its commitment to review the estimates of the multifamily finance market each quarter and to adjust the caps accordingly in its 2016 Scorecard for the government-sponsored enterprises (GSEs). The Scorecard also explains that loans for affordable housing and other underserved market segments do not count against the caps.
The lending caps were designed to encourage participation of private capital and support liquidity in the multifamily housing finance market while sustaining the GSEs’ support for multifamily lending.
FHFA’s decision to raise the lending caps is "based on increased estimates of the overall size of the 2016 multifamily finance market," according to the agency’s announcement. The projected increase in the size of the market is due to "continued high levels of property acquisitions and deliveries of newly constructed apartment units, as well as record levels of loan maturities that require refinancing."