- Fannie Mae reportedly assumes flat rents for four to eight years and expenses up at least 5% annually on NYC rent-regulated loans, while Freddie Mac has reportedly paused lending.
- FHFA Director Bill Pulte called the report “Fake News” and said both agencies continue to lend on rent-stabilized properties under a consistent national credit framework.
- Originations on heavily regulated NYC buildings fell from $27.6B in 2019 to under $11.3B in 2025, leaving owners of about 1 million units with few refinancing options.
Freddie Mac and Fannie Mae are reportedly applying stricter underwriting to New York’s rent-stabilized buildings after the city’s rent freeze, Bisnow reported, citing The City Reporter.
Bisnow noted that FHFA Director Bill Pulte called that report “Fake News” on X and said both agencies still lend on rent-stabilized properties.
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What the Report Says
Fannie Mae now assumes rents will remain flat for four to eight years. That period covers Mayor Zohran Mamdani’s current and possible second terms. The agency also projects expenses will rise at least 5% annually.
According to Bisnow, Freddie Mac has stopped writing loans on these properties while it assesses the freeze. The affected group includes owners, tenant advocates and executives at housing nonprofits.
The freeze covers leases with one- or two-year terms. Meanwhile, owners are challenging it in court.
The Agencies Push Back
However, FHFA Director Bill Pulte disputed reports of a lending halt. In a Monday-night post, he said Freddie Mac continues to quote loans on these buildings.
In a separate post, Pulte said Fannie Mae applies one credit framework nationwide. It evaluates each property’s actual finances, including how local rules affect income and expenses.
Freddie Mac also said it continuously reviews market conditions.
A Shrinking Credit Market
Lending on rent-stabilized buildings has declined since New York’s 2019 rent reforms. Those changes ended several paths landlords had used to deregulate units or raise rents. As a result, property valuations behind existing mortgages were reset, leaving many owners underwater.
Bisnow cited Atrium Data figures showing lenders originated $27.6 billion across more than 3,700 loans in 2019. These loans covered buildings where at least half the units were regulated. By 2025, volume had fallen below $11.3 billion across roughly 1,400 loans. That represents a drop of about 60% in dollar volume.
Meanwhile, agency market share of those originations climbed from 4% in 2019 to nearly 15% in 2024. It then eased to 9% in 2025, per Atrium. The failure of Signature Bank and New York Community Bancorp’s retreat also removed two of the sector’s main lenders.
Lenders Already Adjusting
A Community Preservation Corp. report cited by Bisnow found operating expenses rose 27% from 2020 to 2024. By comparison, rents grew just 11%. That gap emerged before the reported freeze.
CPC’s Rafael Cestero said his group uses similar underwriting assumptions. He now expects collection losses to double to 10%. Consequently, CPC plans to cut its fully affordable New York lending in half.
Cestero also argued that underwriting without a freeze assumption would be inaccurate. Additionally, CPC’s April report showed a 12% delinquency rate in December for the Signature-linked portfolio it services. That was up from 10% in 2024.
Why It Matters
If the agencies tighten lending, owners of roughly 1 million units could face a tougher refinancing market. This comes as they challenge the freeze in court, alleging the Mamdani administration improperly influenced the outcome.
The pressure is also uneven. Regulated rents are frozen, while market-rate rents rose 4.3% year over year through September, according to Chandan Economics data.
What’s Next
The accounts from Pulte and Bisnow’s reporting conflict. Moreover, it remains unclear whether Freddie Mac’s pause is a formal policy.
Watch for further guidance from the FHFA or the agencies. Court rulings in the landlords’ lawsuits could also shape what happens next.
