Freddie Mac multifamily loan purchase cap set at $88 billion for 2026

MCLEAN, Va. - Freddie Mac (OTCQB:FMCC) will operate under an $88 billion loan purchase cap for its Multifamily business in 2026, according to a statement released Monday. The government-sponsored enterprise, with a market capitalization of $30.23 billion, has seen its stock surge over 183% in the past year despite analysts expecting a drop in net income this year.

The cap, established by the U.S. Federal Housing agency, is determined primarily based on projections for the multifamily debt origination market size. The regulatory framework maintains the requirement that 50% of loans purchased must be mission-driven, continuing the same threshold established for the previous year.

"Freddie Mac Multifamily delivers essential liquidity to create affordable apartment supply around the country each and every year," said Kevin Palmer, head of Multifamily for Freddie Mac.

The government-sponsored enterprise historically focuses on affordable housing, with more than 90% of eligible rental units it funds being affordable to families with low-to-moderate incomes earning up to 120% of area median income, according to the press release.

Freddie Mac’s business model includes securitizing approximately 90% of the multifamily loans it purchases, which transfers the majority of expected credit risk from taxpayers to private investors. InvestingPro identifies FMCC as a "prominent player in the Financial Services industry," with current financial metrics showing the company’s liquid assets exceed short-term obligations, though it remains unprofitable over the last twelve months.

The organization’s stated mission involves promoting liquidity, stability, affordability and equity in the housing market throughout economic cycles. Since its founding in 1970, Freddie Mac reports having helped tens of millions of families buy, rent or keep their homes. According to InvestingPro data, the stock appears overvalued at current levels despite showing strong returns over the last five years. Investors can access FMCC’s comprehensive Pro Research Report, one of 1,400+ deep-dive analyses available on the platform.

In other recent news, Freddie Mac reported its financial results for the third quarter of 2025, showing a net income of $2.8 billion, which marks an 11% decline compared to the previous year. Despite this decrease in net income, the company experienced a 9% increase in net interest income, reaching $5.5 billion. These financial results indicate mixed performance for the quarter. Additionally, Freddie Mac has observed fluctuations in mortgage rates over recent weeks. The 30-year fixed-rate mortgage averaged 6.24% recently, a slight increase from 6.22% the previous week, according to Freddie Mac’s Primary Mortgage Market Survey. This comes after a period where the 30-year fixed-rate mortgage had been declining for four consecutive weeks, with an average of 6.17% noted recently. These developments reflect ongoing changes in the mortgage market, which are significant for investors and homeowners alike.

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