Fannie Mae and Freddie Mac are on track to meet their respective $30 billion loan caps before the end of the year, given loan volume in the first quarter. The mortgage agencies combined for $20.4 billion in multifamily loan purchases in 1Q 2015, up significantly year over year.
Given the brisk pace of closings and the firm commitments in the pipeline, industry stakeholders remain concerned that hitting the caps could cause disruption in the financing market. NMHC’s most recent Quarterly Survey results showed that, while conditions for debt financing for the sector remain generally favorable, more concern about the availability of debt is beginning to creep into the market.
Agency lenders are pressing for loan-cap relief. NMHC staff also recently met with Federal Housing Finance Agency (FHFA) Director Mel Watt and key agency members to share industry concern over the caps and then issued a follow-up letter to stress that FHFA maintain multifamily capital flow. Sources suggest the regulator could have a response to the situation as early as this week.
- NMHC Leadership Visits Washington
- New FHFA Director Turns Up the Heat on Housing Finance Reform
- NMHC Members from the Hoosier State Advocate for Multifamily Issues
- Senate Approves Mark Calabria for FHFA Director Position
- White House Releases Housing Finance Reform Memorandum One Day After Sue Ansel Testifies at GSE Hearing on Capitol Hill