Fact Sheet

2024 Multifamily Caps for Fannie Mae and Freddie Mac

HIGHLIGHTS OF 2024 MU​​LTIFAMILY CAPS

• ​The 2024 volume caps applicable to the multifamily loan purchases of Fannie Mae and Freddie Mac (the Enterprises) will be $70 billion for each Enterprise, for a total of $140 billion during the calendar year.
• FHFA anticipates the 2024 cap levels will be appropriate given current market forecasts. However, FHFA will continue to monitor the multifamily mortgage market and increase the caps if necessary. If FHFA determines that the actual size of the 2024 market is smaller than initially projected, FHFA will not reduce the caps.
• To promote affordable housing preservation, 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.

MISSION-DRIVEN, AFFORDABLE HOUSING​ REQUIREMENTS

• ​​T​o ensure a strong focus on affordable housing and underserved markets, FHFA will continue to require that at least 50 percent of the Enterprises’ multifamily businesses be mission-driven, affordable housing in accordance with the definitions in Appendix A.
• ​FHFA has revised the multifamily requirements for mission-driven, affordable housing in Appendix A. For 2024, FHFA will allow loans classified as supporting workforce housing properties to be exempt from the volume caps.

• ​​This mission-driven category was first developed in 2023.
• Workforce housing loans preserve rents at affordable levels in multifamily properties, typically without the use of public subsidies.
• Affordability levels correspond to 80-120 percent of area median income, depending on the market.
• This change supports the Enterprises’ workforce housing activities by allowing full exclusion from the volume caps for eligible loans.

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BACKGROUND

• ​​The purpose of the caps is to ensure the Enterprises support liquidity in the multifamily market, especially in affordable housing and underserved segments, without crowding out private capital.
• Since 2015, FHFA has set caps on the Enterprises’ conventional (market-rate) multifamily businesses.
• To encourage Enterprise financing in affordable housing and underserved market segments, FHFA originally excluded several categories of business from the caps.
• In September 2019, FHFA announced a revised cap structure that applied to all multifamily business and removed previous exclusions.
• For 2023, FHFA set a $75 billion volume cap for each Enterprise and a 50 percent mission-driven minimum percentage.
• In 2024, FHFA will set a $70 billion volume cap for each Enterprise and a 50 percent mission-driven minimum percentage.
• In addition, for 2024, FHFA will allow loans classified as supporting workforce housing properties to be exempt from the volume caps.