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The GSEs’ 2021 Market Caps Could Mean Scarce Market-Rate Capital By Yearend

Expect wider spreads and more competition in 2021.

By Les Shaver | December 15, 2020 at 07:23 AM

Last month, the Federal Housing Finance Agency announced $70 billion in multifamily lending caps for Fannie Mae and Freddie Mac in 2021. In 2020, those caps were $80 billion each for Freddie and Fannie.

At least 50% of the GSE’s loan originations must be dedicated to affordable housing, which is an increase from 37.5% in 2020. The caps apply to the four quarters in the 2021 calendar year, compared to five quarters totaling $100 billion in the previous cap, according to Marcus & Millichap.

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