The Federal Housing Finance Agency has cut the lending caps for Fannie Mae and Freddie Mac to $70 billion each for a total of $140 billion.

That is down from the $150 billion in 2023, $156 billion in 2022, and return to the levels of 2021. Pre-pandemic, the caps in 2018 and 2019 were $35 billion for each of the government-sponsored enterprises (GSE), even as the landscape of multifamily deployment and lending change.

"To ensure a strong focus on affordable housing and underserved markets, FHFA will require that at least 50 percent of the Enterprises' multifamily businesses be mission-driven, affordable housing," the FHFA wrote. "In addition, for 2024, loans classified as supporting workforce housing properties in Appendix A of the Conservatorship Scorecard will be exempt from the volume caps. All other mission-driven loans remain subject to the volume caps."

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