One of the early casualties of the coronavirus outbreak is the much-anticipated, re-proposed capital rule for Fannie Mae and Freddie Mac.

The GSEs have extended their forbearance programs to include multifamily borrowers and renters experiencing hardship due to COVID-19.

Over the past six weeks, Freddie has issued eight multifamily offerings totaling $6.1 billion, and Fannie more than $10 billion.

The hiatus in the net worth sweep added $12.53 billion to the GSEs’ combined net worth over the last six months of 2019, including fourth-quarter profit of $4.27 billion at Fannie and $2.45 billion at Freddie. (Includes data chart.)

The latest multifamily transaction continues the enterprise’s move toward Secured Overnight Financing Rate-based bonds.

Freddie’s return to LIHTC investment in 2018 has resulted in projects in underserved communities in 22 states plus Puerto Rico and Guam.

The new cap structure will allow each firm to invest up to $100 billion in multifamily projects over the next five quarters. At least 37.5% of that investment must be for affordable housing.

Falling interest rates and rising NOIs drive a surge in Fannie's and Freddie’s multifamily business. One problem: how to stay under the cap.

The indictment of apartment mogul Robert Morgan and several of his associates may have accelerated the prepayment speeds of dozens of Fannie’s and Freddie’s multifamily MBS.

The GSE continues to grow its multifamily pass-through business and expands the geographic diversification of underlying assets.