Affordable Housing License Secured by J.P. Morgan

Expanding its Agency Toolkit

J.P. Morgan Commercial Banking secured Freddie Mac’s Multifamily Targeted Affordable Housing Optigo designation, adding to its existing agency offerings and expanding its ability to provide affordable housing financing. The designation complements the bank’s role as a Fannie Mae Delegated Underwriting and Servicing (DUS) lender, per Bisnow.

Since 2022, J.P. Morgan has more than doubled its agency lending business, building market share through both conventional Freddie Mac loans and Fannie Mae DUS executions.

Why it Matters

“JPMorgan Chase is the largest multifamily lender in the country, and so the addition of the affordable piece of the Freddie license was just a natural extension of the product offering that we have,” said John Hofmann, head of agency and institutional capital at J.P. Morgan.

In 2024, the bank contributed $6B in debt and equity to affordable housing investments, helping preserve more than 40,000 rental units. The new designation allows J.P. Morgan to finance additional affordable housing projects with government-backed support.

Freddie vs. Fannie

While Fannie Mae’s DUS program requires lenders to share in credit risk, Freddie Mac’s Optigo model typically involves whole loan purchases that are then securitized. This distinction gives borrowers different financing options.

“We’re really agnostic as to the execution they choose,” Hofmann said. “We want to provide the array of debt options — from the construction loan to the permanent loan — and then we want them to choose the debt that complements their business plan the most.”

Broader Context

The government-sponsored enterprises remain under federal conservatorship, with ongoing debate about their future. The Trump administration has floated a $30B IPO to release Fannie Mae and Freddie Mac from federal control while maintaining a government guarantee on their mortgage-backed securities.

Meanwhile, the agencies continue to anchor multifamily lending: in Q2 2025, Freddie Mac financed $12B in multifamily loans covering 99,000 rental units, 74% of which were affordable. Fannie Mae financed $17.4B over the same period.