On November 18, 2024, FHA released the following press release:
Washington, D.C. – The Federal Housing Finance Agency (FHFA) will allow greater rental housing support from Fannie Mae and Freddie Mac (the Enterprises) by raising the multifamily loan purchase cap for each Enterprise to $73 billion, representing $146 billion in total 2025 multifamily market support and a more than 4 percent increase from 2024, the Agency announced today.
FHFA establishes the caps every year, and they are later included in Appendix A of the Enterprises’ Conservatorship Scorecard, a set of annual priorities that they are expected to meet. Just like in 2024, when the cap for each Enterprise was $70 billion, multifamily loans that finance workforce housing will be excluded from the 2025 limits.
“The 2025 multifamily loan caps reflect the Enterprises’ strong commitment to provide liquidity to make renting a home more affordable,” said FHFA Director Sandra L. Thompson. “Additionally, 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.”
Over the past year, since workforce housing was first exempted from the caps, both Enterprises have seen encouraging growth in this critical market segment. In addition, FHFA is continuing to require that at least 50 percent of the Enterprises’ multifamily businesses be mission-driven.
The Agency will continue to monitor the multifamily mortgage market and maintains the ability to raise the caps further if necessary to support liquidity in the market. However, to prevent market disruption, if FHFA determines that the actual size of the 2025 market is smaller than was initially projected, FHFA will not lower the caps.