FHFA 2021 Purchase Caps Released - New Guidelines for Agencies
FHFA just released 2021 Purchase Caps for Fannie &amp; Freddie. Some interesting changes from this past year:

- $70B for each (down from $80B each in 2020)
- 50% of Cap must be Mission Driven (up from 37.5% in 2020)

**BUT**

- 2021 Cap Structure is on a 4-quarter system, not the 5-quarter system from 2014 - 2019. This equates to $1/2B more/month in **capped** loan purchases.

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[Link to article](https://www.fhfa.gov/Media/PublicAffairs/Pages/FHFA-Announces-2021-MF-Loan-Purchase-Caps-for-Fannie-and-Freddie.aspx)
[{"id": "gcrzii9", "text": "I fully expect agencies to amplify their focus on B and C class properties to meet the 50% Mission Driven hurdle, especially in the last half of 2021 depending on their progress for the VLI hurdle. It will be interesting to see if there is any effect on Class A lending. If the focus is shifted far enough away from class A, I expect CMBS and large LifeCo to swoop in for market share. \n\nLet me know your thoughts on what these changes will amount to in 2021.", "replies": [{"id": "gcs116t", "text": "More towards residential vs retail", "replies": [], "depth": 2}, {"id": "gcsasz9", "text": "Thank god. I\u2019m at a LifeCo and just pass on anything fixed rate stabilized because I know it\u2019s going off sub 2.50%", "replies": [], "depth": 2}], "depth": 1}, {"id": "gdio7oe", "text": "Well, you also didn\u2019t mention that the determination for what is mission driven also changed. Previously had a lot of markets where it was considered mission at 120% or AMI. Now it\u2019s 80% across the board. So, certain markets it will be harder to qualify as mission, while other markets will be easier. A lot of noise on the statement issued from FHFA. The Agencies don\u2019t seem worried about their ability to hit the 50% requirement.", "replies": [], "depth": 1}]