The Federal Housing Finance Agency (FHFA) has declared 2022 multi-family credit purchase limits for Fannie Mae and Freddie Mac – $ 78 billion for each business, for a total of $ 156 billion to help the multi-family market . The caps for 2022, which show an expansion of $ 70 billion for each business in the previous year, are aligned with the FHFA’s projections for the overall growth of the multi-family housing starts market. As expected, the focus is on reasonable housing and traditionally underserved markets, and the FHFA will require approximately 50% of corporate multi-family businesses to be mission-oriented affordable housing. The FHFA will also need around 25% of multi-family business lending activities to be affordable for residents at 60% or less of the region’s median income (MAI), up from 20% in 2021.
Additionally, in 2022, the FHFA said loans to affordable units in financially high rental markets will be classified as mission-driven, as will loans to finance energy efficiency improvements or energy efficiency improvements. water with affordable units at 60% or less of the MAI.
“Increases in multi-family loan purchase ceilings and higher mission-driven business requirements ensure that corporate multi-family businesses have a strong and growing commitment to affordable housing finance, especially for residents and communities in need. harder to serve, ”FHFA Acting said director Sandra Thompson.
In addition, the FHFA will continue to monitor the impacts of COVID-19 on the multi-family mortgage market and update the caps and requirements as necessary. However, this will not reduce the caps.
“MBA and FHFA share a common goal of increasing the supply of affordable rental housing, and we commend the FHFA for its continued commitment to provide stable liquidity to the market and its goal of helping tenants in underserved markets,” said Bob Broeksmit, President and CEO of MBA. . “The $ 78 billion caps for each GSE – an increase of $ 8 billion from 2021 – and the 50% mission-oriented requirements support affordable multi-family housing and help ensure a level playing field between different sources of capital. As the economy continues to recover from the pandemic, we are also grateful for the flexibility of the FHFA if the caps and mission-oriented requirements need to be updated. “
The Mortgage Bankers Association (MBA) praised the FHFA for raising the caps.
Summary of the news:
- FHFA increases purchase limits for multi-family loans by 2022
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