The GSE regulator has already directed Fannie Mae and Freddie Mac to reduce their multifamily lending by 10% in 2013 and now the agency is looking for other ways to reduce their multifamily business.
On Friday, the Federal Housing Finance Agency released a request for input on placing limits on multifamily loan terms, income levels and loan amounts.
“Should the FHFA consider re-imposing multifamily loan limits? If so, should the loan limits apply on a per-unit basis or on the basis of the maximum mortgage amount that is available to a property?”
Fannie and
“The enterprises currently provide a wide range of multifamily activities that may discourage alternative sources of capital that might be able to provide financing,” the FHFA says in Friday’s request for input.
To limit their multifamily business, the regulator suggests the GSEs could be limited to purchasing multifamily mortgages that can be securitized or aggregated prior to securitization.
The FHFA notes an exception could be carved out for special multifamily products that provide financing for underserved markets where securitization is not an option.
The FHFA is seeking input on the proposal for 60 days.
