The leaders of NMHC’s Finance Committee met with FHFA on August 4 to discuss the current state of the multifamily debt markets. The Committee explained the critical importance of Fannie Mae and Freddie Mac (Enterprises) over the remaining months in 2022, as other lenders have either stepped back from lending or are highly uncompetitive.
What This Means
The multifamily marketplace relies on a variety of debt capital sources to fund their investment activities and is negatively impacted if these sources are disrupted.
Why This is Critical for Our Industry
FHFA relies on input from NMHC and its members to establish the annual purchase caps for the Enterprises and to make mid-year corrections, as needed. The purchase caps dictate how much capital the Enterprises can provide to the multifamily debt market needs. Ongoing capital market volatility and disruption increase the importance of the critical role the Enterprises serve in providing a constant source of debt capital.
FHFA has shown a continued commitment to working with NMHC to establish rationale purchase caps and to make annual and quarterly adjustments as needed.