The FHFA increases the purchase ceilings of multi-family loans for businesses – NMP
The 2022 caps represent an increase of $ 8 billion, or 11.4%, from $ 70 billion for each company this year, and are based on the FHFA’s projections for the overall growth of the multi-family assembly market, a indicated the agency.
To ensure a strong focus on affordable housing and traditionally underserved markets, the FHFA said, at least 50 percent of corporate multi-family businesses will need to be mission-oriented affordable housing. The FHFA will also require at least 25% of multi-family businesses to be affordable to residents at or below 60% of the region’s median income, up from 20% in 2021.
“Increases in multi-family loan purchase ceilings and higher, mission-driven business demands ensure that corporate multi-family businesses have a strong and growing commitment to affordable housing finance, especially for residents and communities in need. more difficult to serve, ”said the FHFA. Acting Director Sandra L. Thompson.
In addition, the FHFA said it has changed some definitions of affordable, mission-oriented multi-family housing in Annex A of the Conservation Scorecard. In 2022, the FHFA will authorize loans on affordable units in financially heavy rental markets and loans to finance energy or water efficiency improvements with affordable units equal to or less than 60% of l ‘AMI to be classified as mission-oriented.
To ensure businesses continue to provide sufficient liquidity and support in the multi-family mortgage market, the FHFA said it will continue to monitor the impacts of COVID-19 in the multi-family mortgage market and will update update multi-family ceilings and mission-based requirements if adjustments are warranted. . However, to avoid any disruption to the market, the FHFA has said that if it determines that the actual size of the 2022 market is smaller than initially expected, it will not lower the caps.
“The FHFA’s increase in Fannie Mae’s multi-family loan purchase limit in 2022 will continue to strengthen our ability to provide liquidity and stability in the multi-family mortgage market and recognizes our more than 30-year history in as a trusted source of multi-family mortgage capital, ”said Michele Evans, executive vice president and head of multi-family at Fannie Mae. In addition, FHFA’s focus on affordable, mission-driven multi-family housing echoes Fannie Mae’s commitment to preserving and expanding the supply of affordable housing, as well as funding rental housing. green and sustainable quality, across the United States.