Sept 13 (Reuters) - The Federal Housing Finance Agency said on Friday it revised the limits on what Fannie Mae and Freddie Mac buy for their multifamily business into the end of 2020 in an effort to address a shortage in affordable housing.
The new multifamily loan purchase caps for the two government-sponsored enterprises will be $100 billion each for a total of $200 billion for the five-quarter period through the final quarter of 2020, FHFA said.
The new limits apply to all multifamily business with no exclusions, the regulator said.
“These new multifamily caps eliminate loopholes, provide ample support for the market without crowding out private capital, and significantly increase affordable housing support over previous levels,” FHFA Director Mark Calabria said in a statement.
FHFA said at least 37.5% of the GSEs’ multifamily business go into “mission-driven, affordable housing.”
Loans that finance energy and water efficiency improvements will be considered conventional business, unless they meet other mission-driven affordability requirements, FHFA said.
Reporting by Richard Leong; Editing by Steve Orlofsky