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FHFA Announces $31 Billion Cap and 2016 Scorecard

December 21, 2015

PLEASE NOTE: "On August 18, the FHFA increase the 2016 cap for the second time this year. The new lending cap is $36.5 billion More.

The Federal Housing Finance Agency, FHFA, recently announced the 2016 Scorecard for Freddie Mac and Fannie Mae, including a section on Multifamily.

FHFA raised the cap on multifamily purchase volume for each enterprise by $1 billion over last year—to $31 billion. Loans in affordable and underserved market segments continue to be excluded from the cap.

The new scorecard is based on an estimated new multifamily loan origination market size of $220 to $230 billion—and an overall target market share of about 20 percent for each enterprise.

New Quarterly Review — Market Indexing

New this year, FHFA will review the market size estimate quarterly, using current market data from Freddie Mac, Fannie Mae, the Mortgage Bankers Association and the National Multifamily Housing Council. FHFA will raise the cap in proportion to the change in market size as necessary.

FHFA also outlines how it will treat loans in affordable and underserved markets.

Targeted Affordable Housing Properties

A number of cap exclusions are outlined, including:

  • FHFA will exclude from the cap 50 percent of the loan amount — if the restricted affordable housing units (for limited income tenants) make up less than 50 percent of the total units.
  • FHFA will exclude from the cap the entire loan amount if half or more of the units are restricted.

On a case by case basis, FHFA will consider requests from Freddie Mac or Fannie Mae to exclude from the cap other loans that meet affordable housing and mission goals but don’t meet the exact definition of targeted affordable housing.

FHFA’s scorecard also addresses cap exclusions related to loans in high cost markets and rural areas, and for small multifamily properties, manufactured housing rental communities, and senior housing assisted living properties.

2016 FHFA Scorecard (p. 10 for Multifamily)

2016 Exclusions Summary


Related Information

Download FHFA's Duty to Serve/Notice of Proposed Rulemaking webinar slides from December 22, 2015.

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