FHFA Raises Caps for Multifamily Lending Amid Strong Fundamentals
May 13, 2016
The Federal Housing Finance Agency recently raised the caps of multifamily purchases by Fannie Mae and Freddie Mac, by $4 billion. The cap was increased from $31 billion to $35 billion. With the GSEs already having a huge market share in multifamily finance, 78.3 percent according to recent figures by affiliated publication Inside MBS & ABS, the FHFA said an increase in the caps is warranted due to the larger-than-expected market this year. Recent projections by the mortgage giants show that they are issuing multifamily mortgage-backed securities in 2016 at a rate that may exceed $100 billion by the end of the year.