Freddie Mac Multifamily Loan Purchase Cap for 2023 is $75 Billion

Rhea-AI Summary

Freddie Mac Multifamily has announced a loan purchase cap of $75 billion for 2023, set by the Federal Housing Finance Agency (FHFA) based on market projections. New mission-driven criteria mandate that 50% of loan purchases focus on affordable housing and underserved markets. Key areas include targeted affordable housing, workforce housing, and rural properties. This approach aims to enhance liquidity while supporting affordable multifamily housing. Comparatively, loan purchase caps were $78 billion for 2022 and $70 billion for 2021.

Positive

• Loan purchase cap set at $75 billion for 2023, showing commitment to affordable housing.
• 50% of loan purchases required to support mission-driven criteria, enhancing focus on underserved markets.

Negative

• None.

Changes to “Mission-Driven” Parameters will Shape Multifamily Affordable Lending

MCLEAN, Va., Nov. 10, 2022 (GLOBE NEWSWIRE) -- Freddie Mac Multifamily’s loan purchase cap for 2023 will be $75 billion. The cap is set by the Federal Housing Finance Agency (FHFA) based on projections for the size of the multifamily debt origination market. Freddie Mac has also received from FHFA updated criteria for its “mission-driven” business, which includes loans for affordable housing and underserved market segments.

“The loan purchase cap and new mission-driven requirements will shape how we approach the multifamily market in the year ahead,” said Kevin Palmer, head of Multifamily for Freddie Mac. “As always, our goal is to be a consistent source of liquidity with a keen focus on supporting affordable multifamily housing. FHFA has again set strong mission requirements that set a clear North Star for our business.”

FHFA defines its mission-driven requirements in Appendix A of its Scorecard. For 2023, 50% of loans purchases must be mission driven. Mission-driven is defined as loan purchases that support:

• Targeted Affordable Housing properties where all or a portion of the units are income or rent restricted as a result of a regulatory agreement or a recorded use restriction
• Workforce Housing properties where units are subject to either rent or income restrictions that are codified in loan agreements
• Other affordable units where rents are affordable to tenants at various income thresholds but are not subject to tenant income or rent restrictions
• Properties located in rural areas as defined by the Duty to Serve regulation
• Manufactured Housing Communities that receive credit under the Duty to Serve regulation, which requires tenant pad lease protections
• Energy- or water-efficiency improvements for units affordable at or below 80% of area median income
  

The caps for 2022 and 2021 were $78 billion and $70 billion, respectively.

Freddie Mac makes home possible for millions of families and individuals by providing mortgage capital to lenders. Since our creation by Congress in 1970, we've made housing more accessible and affordable for homebuyers and renters in communities nationwide. We are building a better housing finance system for homebuyers, renters, lenders and taxpayers. Learn more at FreddieMac.com, Twitter @FreddieMac and Freddie Mac's blog FreddieMac.com/blog.

MEDIA CONTACT: Mike Morosi
(703) 918-5851
Michael_Morosi@FreddieMac.com

FAQ

What is Freddie Mac's loan purchase cap for 2023?

Freddie Mac's loan purchase cap for 2023 is set at $75 billion.

What percentage of Freddie Mac's loans must meet mission-driven requirements in 2023?

In 2023, 50% of Freddie Mac's loan purchases must meet mission-driven requirements.

Which markets do the mission-driven loan criteria target?

The mission-driven loan criteria target affordable housing, workforce housing, rural properties, and more.

How does the loan purchase cap for 2023 compare to previous years?

The loan purchase cap for 2022 was $78 billion and for 2021 it was $70 billion.