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Policy Page
Fannie Mae and Freddie Mac Multifamily Businesses

Fannie Mae and Freddie Mac continue to play a significant role in supporting multifamily housing needs, particularly for low-income households.  FHFA's goal is to maintain Enterprise support of the multifamily affordable housing market without crowding out private capital. FHFA's focus includes multifamily lending for affordable units across several sectors, including traditional affordable housing such as Low-Income Housing Tax Credit (LIHTC) properties, seniors housing, rural markets, and manufactured housing communities.

FHFA will require the Enterprises to continue using credit risk transfers for their multifamily business, resulting in the private market sharing in potential credit losses.  The Enterprises use two models of credit risk transfers: Fannie Mae uses loss-sharing transactions through a delegated underwriting system, which has produced low losses since it was first offered in 1988; and Freddie Mac has a capital markets execution to transfer the bulk of its credit risk.  Both approaches align interests between the Enterprises and lenders to manage complex credit decisions and limit losses.  The positive results of these models were confirmed by the Enterprises' multifamily portfolio performance through the 2008 financial crisis and by the broad liquidity available to most segments of the market.

Related Documents

FHFA Revises Multifamily Loan Purchase Caps for Fannie Mae and Freddie Mac (September 13, 2019 News Release)
FACT SHEET:  New Multifamily Caps for Fannie Mae and Freddie Mac (September 13, 2019)​ 
Prepared Remarks of Melvin L. Watt at the Brookings Institution Forum on the Future of Fannie Mae and Freddie Mac​
2014 Scorecard for Fannie Mae, Freddie Mac and Common Securitization Solutions
The 2014 Strategic Plan for the Conservatorships of Fannie Mae and Freddie Mac
FHFA Seeks Public Input on Reducing Fannie Mae and Freddie Mac Multifamily Businesses (August 9, 2013 News Release)
FHFA Releases Fannie and Freddie Reports on Viability of Their Multifamily Businesses Without Government Guarantees (May 3, 2013 News Release)
Fannie Mae: Analysis of the Viability of Fannie Mae’s Multifamily Business Operating without a Government Guarantee - Response to FHFA Scorecard Directive (December 17, 2012)   
Freddie Mac: Report to the Federal Housing Finance Agency: Housing Finance Reform in the Multifamily Mortgage Market (December 2012)
Freddie Mac Multifamily Third-Party Reports

Public Input

Undated Arbor Commercial Mortgage
Undated Bridge Capital Partners
Undated CBRE Capital Markets
Undated H and H Homes
Undated Martell & Associates
Undated Sonoma Housing Advisors
Undated Washington State Housing Finance Corporation (WSHFC)
8/16/2013 Northmarq Capital
9/1/2013 Louisiana Community Reinvestment Coalition
9/5/2013 PPM Finance
9/9/2013 BRE Properties
9/9/2013 McDougal Companies 
9/12/2013 Southern Management
9/19/2013 CWS Capital Partners
9/19/2013 Paragus Group
9/19/2013 Pollock Shores Real Estate Group
9/20/2013 Pinnacle
9/24/2013 Gables
9/25/2013 Highridge Costa Investments
9/25/2013 Wells Fargo Multifamily Capital (WFMC)
9/27/2013 Federal Home Loan Bank of New York
9/30/2013 AGPM
9/30/2013 Aukum Management
10/8/2013 American Bankers Association et al.
10/1/2013 hmi Property Solutions
10/1/2013 Waterton Associates
10/1/2013 Westdale Real Estate Investment & Management
10/2/2013 Legacy Partners
10/3/2013 The CT Group
10/4/2013 American Seniors Housing Association (ASHA)
10/4/2013 Amerisphere
10/4/2013 Brightview Senior Living
10/4/2013 DUS Peer Group
10/4/2013 GID Investment Advisors
10/4/2013 National Association of Home Builders (NAHB)
10/7/2013 Berkadia
10/7/2013 Brookdale Senior Living
10/7/2013 Capital Senior Living
10/7/2013 Centerline Capital Group
10/7/2013 era living
10/7/2013 John M. Corcoran and Company
10/7/2013 Mercy Housing
10/7/2013 Red Capital Group
10/7/2013 Senior Star Living
10/8/2013 Center for American Progress et al.
10/8/2013 Citizen's Housing and Planning Association, Inc. (CHAPA)
10/8/2013 Community Investment Corporation (CIC)
10/8/2013 Community Preservation Corporation (CPC)
10/8/2013 Enterprise Community Partners
10/8/2013 Grandbridge Real Estate Capital
10/8/2013 Greystone
10/8/2013 Legend Senior Living
10/8/2013 Milestone Group
10/8/2013 Mortgage Bankers Association
10/8/2013 National Assocation of Affordable Housing Lenders (NAAHL)
10/8/2013 National Low Income Housing Coalition (NLIHC)
10/8/2013 National Council of State Housing Agencies (NCSHA)
10/8/2013 National Housing Conference (NHC)
10/7/2013 National Multifamily Housing Council/National Apartment Association (NMHC/NAA)
10/8/2013 New York City Housing Development Corporation (HDC)
10/8/2013 Oak Grove Capital
10/8/2013 PNC Real Estate
10/8/2013 Prudential Mortgage Capital Company (PMCC)
10/8/2013 Representative Carolyn B. Maloney
10/8/2013 Senator Charles E. Schumer
10/16/2013 Walker and Dunlop
11/1/2013 Representative Ed Perlmutter et al.  ​