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FHFA Raises Multifamily Caps by $6 Billion

November 19, 2024

On November 18
, the Federal Housing Finance Agency (FHFA) announced that the 2025 multifamily loan purchase caps for Fannie Mae and Freddie Mac (the Enterprises) will be $73 billion for each Enterprise, for a combined total of $146 billion. Click here for CREFC’s Side-by-Side analysis of the 2025 Multifamily Caps.

Key Takeaways

  • Caps Increased to $73 billion: FHFA stated that the increases from the $70 billion loan purchase caps per Enterprise in 2024 are “appropriate given current market forecasts.”
  • FHFA will closely monitor the multifamily mortgage market and may increase the caps if necessary. Should the actual size of the 2025 market be smaller than initially projected, FHFA will not reduce the caps.
  • 50% Mission-Driven Maintained: To maintain a strong emphasis on affordable housing and underserved markets, FHFA will continue to require that at least 50% of the Enterprises’ multifamily businesses be mission-driven, affordable housing.
  • Workforce Housing Continues to Be Exempt from Caps: To further promote affordable housing preservation, loans classified as supporting workforce housing properties in Appendix A will remain exempt from the volume caps. (All other mission-driven loans remain subject to the volume caps.)

Why it matters: FHFA Director Sandra Thompson noted that the 2025 caps reflect the Enterprises’ “commitment to provide liquidity to make renting a home more affordable.” She further stated:

“The ongoing workforce housing exemption will continue to enhance the Enterprises’ ability to support properties that preserve affordable rents, including properties preserved or created through corporate-sponsored affordable housing initiatives.”

Go deeper: CLICK HERE for CREFC’s Side-by-Side analysis of the 2025 Multifamily Caps.

Please contact Sairah Burki at sburki@crefc.org or David McCarthy at dmccarthy@crefc.org with any questions. 
 

Contact 

Sairah Burki
Managing Director, Head of Regulatory
Affairs & Sustainability
703.201.4294
sburki@crefc.org

David McCarthy
Managing Director, Chief Lobbyist, 
Head of Legislative Affairs
202.448.0855
dmccarthy@crefc.org
The information provided herein is general in nature and for educational purposes only. CRE Finance Council makes no representations as to the accuracy, completeness, timeliness, validity, usefulness, or suitability of the information provided. The information should not be relied upon or interpreted as legal, financial, tax, accounting, investment, commercial or other advice, and CRE Finance Council disclaims all liability for any such reliance. © 2024 CRE Finance Council. All rights reserved.
FHFA Raises Multifamily Caps by $6 Billion
November 19, 2024
On November 18, the Federal Housing Finance Agency (FHFA) announced that the 2025 multifamily loan purchase caps for Fannie Mae and Freddie Mac (the Enterprises) will be $73 billion for each Enterprise, for a combined total of $146 billion.

News

House Called for GOP

November 19, 2024

The Associated Press
officially called the House of Representatives for the Republican party on Thursday, Nov.14. This victory supplements the GOP’s control of the Presidency and the Senate.

By the numbers: Control of the House this election cycle came down to just over two dozen toss-up seats across the country. As of Monday, here is where the numbers stand:

  • Democratic Pickups (7): AL-02, CA-27, LA-06, NY-04, NY-19, NY-22, OR-05
  • GOP Pickups (4): CO-08, MI-07, PA-07, PA-08
  • Democratic Holds (31): CA-09, CA-47, CA-49, CT-05, FL-09, IN-01, IL-17, KS-03, ME-02, MD-06, MI-03, MI-08, MN-02, NC-01, NH-01, NH-02, NY-03, NY-18, NV-01, NV-03, NV-04, OH-01, OH-13, OR-04, OR-06, PA-17, TX-28, TX-34, VA-07, WA-03, WA-08
  • GOP Holds (23): AZ-01, AZ-02, AZ-06, CA-03, CA-22, CA-40, CA-41, CO-03, FL-13, FL-27, IA-03, MI-10, MT-01, NE-02, NY-01, NY-17, NJ-07, PA-01, PA-10, TX-15, VA-02, WI-01, WI-03
  • Too Close to Call (5): AK-AL, CA-13, CA-45, IA-01, OH-09
  • The parties have thus far split these toss-ups, landing themselves in nearly the same spot they found themselves before the election. Click here for the list of the toss-up seats from Cook Political Report.

In our House bellwethers, Democrat Eugene Vindman won his race with 51.2% of the vote in VA-2 to keep the district in Democratic hands.

  • Just a couple miles south, in VA-7, Republican Jen Kiggans won her race by 50.8%, a nearly identical margin from her 2022 victory.
  • Both were narrowly favored.

With the decisive victory for President Trump on the national level, conventional political wisdom says that Republicans should have a commanding majority in the House of Representatives and won more competitive seats.

Control, but for how long?

Every seat will count in order for Republicans to pass their agenda come January. Notably, President-elect Trump has picked three House members to be a part of his new administration.

  • Rep. Matt Gaetz (R-FL-1), Attorney General nominee. Gaetz resigned from the House on Nov. 13 as soon as he was publicly nominated to the position.
  • Rep. Mike Waltz (R-FL-6), National Security Advisor nominee
  • Rep. Elise Stefanik (R-NY-21), Ambassador to the U.N. nominee

Click here to see the full list of his cabinet picks.

Why it matters: While all of the members listed above are from “safe” Republican seats, their vacancies may cause hurdles for House Speaker Mike Johnson (R-LA) as he looks to pass legislation in the first 100 days.

Please contact James Montfort (Jmontfort@crefc.org) with any questions.

Contact 

James Montfort
Manager, Government Relations
202.448.0857
jmontfort@crefc.org 

The Capital, Washington DC

Republicans Sweep Elections

The information provided herein is general in nature and for educational purposes only. CRE Finance Council makes no representations as to the accuracy, completeness, timeliness, validity, usefulness, or suitability of the information provided. The information should not be relied upon or interpreted as legal, financial, tax, accounting, investment, commercial or other advice, and CRE Finance Council disclaims all liability for any such reliance. © 2024 CRE Finance Council. All rights reserved.
House Called for GOP
November 19, 2024
The Associated Press officially called the House of Representatives for the Republican party on Thursday, Nov.14.

News

Post-Election Policy Outlook: GOP Trifecta

November 19, 2024

Republicans will have the lawmaking “trifecta” of the Presidency, Senate, and House in January 2025. CREFC updated its scenario analysis with the outcomes, the highlights of which are summarized below.

Why it matters: The trifecta will make legislating on tax and budgetary items easier, though not a walk in the park as the House majority will be narrow (see story below). The 53-47 GOP Senate will make it easier for some Trump nominees to get confirmed, but the filibuster means 60 votes are needed to advance most legislation, outside “reconciliation” (more below).

Go deeper: For CRE and multifamily finance the largest impacts will be tax related, but a change in regulatory policy could have positive effects as well.

  • Reconciliation: Republicans will use budget reconciliation to enact tax legislation with a simple majority in the Senate, thus bypassing the filibuster for items related to government taxing and spending. The GOP used the procedure for tax in 2017, and Democrats employed it for the American Rescue Plan and the Inflation Reduction Act. While reconciliation legislation must have a nexus to spending, both parties have sought to push the bounds of what can qualify under the rules.
  • Tax: The starting point is a reauthorization of the expiring provisions of the Tax Cuts and Job Act (TCJA). However, deficit-minded Members of Congress may seek to offset tax cuts with spending reductions or other tax hikes. The 199A pass-through deduction, which impacts real estate businesses, is a key item expiring. However, the deduction has strong GOP support. Speaker Mike Johnson (R-LA) has said other proposals, like no tax on tips, would need to be “paid for” with offsetting spending cuts.
  • GSE Conservatorship: President-Elect Donald Trump’s forthcoming nominees for Treasury Secretary and Federal Housing Finance Agency (FHFA) Director will be key figures in implementing any administrative exit from the conservatorship. While legislative action on GSE reform has been nonexistent over the past several years, there are rumblings that some lawmakers may be looking to use reconciliation to advance reform efforts.
  • Regulatory Freeze: A new president usually implements a pause on new regulations to allow new appointees time to have input on the final rules. While the edict does not necessarily apply to independent agencies, the Congressional Review Act (CRA) allows Congress and the President to disapprove recently finalized regulations with a simple majority in the Senate. With a GOP trifecta, lame-duck regulations are in danger of repeal, which adds teeth to the freeze. As such, the Basel endgame capital rules are unlikely to be finalized near term.

Financial Regulator Shuffle: The scenario analysis includes a complete chart on key financial regulator term expirations.

  • We highlight some immediate impacts when Trump takes office on January 20.
  • The Senate may confirm cabinet level officials early and the other vacancies may be filled by acting officials until a nominee is confirmed.

Of note, the Federal Vacancies Reform Act lays out default filling vacant positions. According to the Congressional Review Service: “As a default rule, the first assistant to a position automatically becomes the acting officer. Alternatively, the President may direct either a senior agency official or a person serving in any other [Senate-confirmed position] to serve as the acting officer.”

  • Treasury and HUD Secretaries: While there is no term of office, a Secretary traditionally steps down with a new administration or could be removed by the new president.
  • FHFA Director: The President can fire Director Sandra Thompson and designate an acting Director who is Senate confirmed or selected from the order of succession in the agency. Thompson was acting director by virtue of being a deputy director after President Joe Biden fired Mark Calabria.
  • Comptroller of the Currency (OCC): Michael Hsu is the acting comptroller for the Office of the Comptroller of the Currency (OCC) He could be replaced with a different acting official. The Comptroller serves on the Federal Deposit Insurance Corp. board, and the OCC is an independent agency that coordinates federal banking regulation with the Fed and FDIC. A quick switch here ensures the Trump administration will have an immediate say on bank regulation.
  • CFPB Director: Consumer Financial Protection Bureau (CFPB) Rohit Chopra will likely be removed by President Trump and replaced with an acting official.
  • SEC Chair: The Securities and Exchange Commission (SEC) Chair, Gary Gensler, is expected to resign, as is traditional with a change in administration. Trump would name an acting chair from one of the two GOP commissioners, Hester Peirce or Mark Uyeda, in the interim period.
  • The Fed: The Board of Governors is full, and the earliest terms expire in 2026 (unless someone steps down first). Speculation is rampant that President Trump will fire Jerome Powell. However, Fed Chair Powell confirmed earlier this month he will not step down and does not believe the president has the power to fire him.

The bottom line: The Republican trifecta and forthcoming regulatory transitions will allow Republicans and the Trump administration to move quickly on tax legislation and unwind or stop recent regulations, but other priorities will require bipartisan support or time for new regulators to take their seats.

Contact David McCarthy (dmccarthy@crefc.org) with questions. 

Contact 

David McCarthy
Managing Director, Chief Lobbyist, 
Head of Legislative Affairs
202.448.0855
dmccarthy@crefc.org

Click the image for the full 2024 outcome analysis. 

The information provided herein is general in nature and for educational purposes only. CRE Finance Council makes no representations as to the accuracy, completeness, timeliness, validity, usefulness, or suitability of the information provided. The information should not be relied upon or interpreted as legal, financial, tax, accounting, investment, commercial or other advice, and CRE Finance Council disclaims all liability for any such reliance. © 2024 CRE Finance Council. All rights reserved.
Post-Election Policy Outlook: GOP Trifecta
November 19, 2024
Republicans will have the lawmaking “trifecta” of the Presidency, Senate, and House in January 2025. CREFC updated its scenario analysis with the outcomes, the highlights of which are summarized below.

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