The new initiative will provide pricing incentives to multifamily property owners who accept housing choice vouchers issued by the Department of Housing and Urban Development.
Fannie Mae and Freddie Mac met all the FHFA benchmarks last year, but even if they’re lucky enough to do just as well this year, they would still fall short on several multifamily goals.
The collapse of Champlain Towers South in Florida resulted in the GSEs issuing temporary guidelines tightening eligibility requirements for condo loans. Industry representatives have denounced the new rules as draconian.
The lawsuit brought by fair housing organizations focused on Fannie Mae’s maintenance and marketing of its real estate-owned properties, that is, homes acquired through foreclosure.
Multifamily caps have kept Fannie and Freddie from expanding their footprint in the apartment market, which grew by 25% in 2021 and is expected to expand by as much as 11% this year.
When-Issued certificates allow the enterprise to advance fund the guaranteed portions of its signature K-deals. That means Freddie can transfer market risk while pooling collateral for its MBS.
The new goals don’t deviate dramatically from what the agency proposed in August, but the mulitfamily goals will only apply to 2022 instead of the usual three-year time span.
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