The Federal Housing Finance Agency (FHFA) said continued high levels of property acquisitions and deliveries of newly constructed apartment units, as well as record levels of loan maturities requiring refinancing, have resulted in the 2016 multifamily finance market being larger than originally estimated.
Consistent with FHFA’s 2016 Scorecard, in which the housing agency committed to make quarterly adjustments upon reviewing the size of the multifamily finance market, FHFA announced on May 4, 2016 an increase from $31 billion to $35 billion effective immediately.
"FHFA engaged in a thorough analysis of the multifamily market and determined that, to adjust to the realities of the market and ensure that Fannie Mae and Freddie Mac have the flexibility to continue supporting this important sector, an increase in the lending caps is warranted," said FHFA Director Melvin L. Watt. "Supporting liquidity in the multifamily housing finance market remains a priority for FHFA and we will also continue to ensure that Fannie Mae and Freddie Mac maintain their strong support for financing of affordable and workforce housing."
Certain affordable and underserved markets will continue to be excluded from the lending caps.
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