This year, the volume is moving markedly faster, with Fannie Mae purchasing roughly $21.5 billion in multifamily loans this first financial quarter of 2021, in contrast to the $14.1 billion purchased back in Q1 2020. Freddie Mac is only sitting at $14 billion in purchases for the first quarter of 2021, but that figure is still $4 billion more than that of the previous year’s Q1 purchases of approximately $10 billion in multifamily loans. Note that these figures represent purchases made before the DSR requirements were rolled back, which was first announced in May of this year. Overall, this led to speculation that Fannie and Freddie may need to make
some adjustments to their strategies to have enough of an allocation to make it through the entirety of 2021. Speculation quickly became reality when Fannie Mae opted to (temporarily) increase their loan guarantee fees in an effort to slow volume down for the foreseeable future. And while the volume caps are adjustable, there has been no sign that the FHFA is even considering raising the limits at this time. Even with the prospect of continually less attractive pricing from the GSEs as things pick up in the market, there is still a firm belief that both Fannie and Freddie will strive to remain competitive with the growing amount of capital
sources available. Private investors may have had their moment in the sun in 2020, but the giants have officially come back out to play.
Matthew Sloley Head of Content Janover Ventures email@example.com Matthew Sloley is a former mortgage broker who transitioned to creating informative and educational content geared towards small business, multifamily, and commercial investors.
FANN I E AND FREDD I E WI LL
STR IVE TO REMA I N COMPETITIVE WITH THE GROWI NG AMOUNT OF CAP ITAL SOURCES AVA I LABLE .
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