FHFA Lowers Multifamily Caps by $10 Billion

November 20, 2023

On November 14, the Federal Housing Finance Agency (FHFA) announced the 2024 multifamily loan purchase caps for Fannie Mae and Freddie Mac (the Enterprises) of $70 billion for each Enterprise ($140 billion total) to support the multifamily market.

Key Takeaways

  • Caps Reduced to $70 Billion: FHFA noted the reduction from 2023’s $75 billion caps per Enterprise are “appropriate given current market forecasts”.
  • 50% Mission-Driven Maintained: To ensure a strong focus on affordable housing and underserved markets, FHFA continues to require at least 50% of the Enterprises multifamily businesses be mission-driven, affordable housing.
  • Workforce Housing Exempt from Caps: In a departure from 2023’s mandate, loans classified as supporting workforce housing properties in Appendix A of the Conservatorship Scorecard will be exempt from the volume caps. All other mission-driven loans will remain subject to the volume caps.

Why it matters: Exempting workforce housing, a mission-driven category developed in 2023, from the multifamily loan purchase caps highlights FHFA’s greater focus on affordable housing under Director Sandra Thompson.

CREFC’s DC Symposium on November 28 will feature Director Thompson as a keynote speaker, providing our members the opportunity to learn more about FHFA’s policy priorities.

CLICK HERE for CREFC’s Side-by-Side analysis of the 2024 Multifamily Caps. The document includes a detailed chart on how the mission-driven criteria changed in the new caps.

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


Sairah Burki
Managing Director, Regulatory Affairs

David McCarthy
Managing Director, Head of Policy

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