The Federal Housing Finance Agency (FHFA) has stated that the COVID-19 forbearance for Fannie Mae and Freddie Mac multifamily loans will be extended. The forbearance program, which was set to conclude on September 30, has been extended for the fourth time by the agency. “Given the uncertain nature of this pandemic, FHFA is taking further action to protect renters, property owners, and the mortgage market,” said director Sandra Thompson.
Fannie Mae stated that its multifamily COVID-19 forbearance program has been extended indefinitely in order to assist multifamily property owners and tenants who are facing financial hardship as a result of COVID-19. During the forbearance period, which was slated to conclude on September 30, 2021, landlords must delay any evictions for renters who are unable to pay their rent.
Fannie Mae is dedicated to provide continuing forbearance alternatives for Fannie Mae multifamily borrowers while financial and economic uncertainties around COVID-19 persist," said Michele Evans, executive vice president and head of multifamily at Fannie Mae. "This would allow key tenant rights to continue, allowing residents to remain in their units as the recovery effort progresses."
Property owners must also provide written notice to renters about the safeguards available to them, such as the ability to return back rent over time rather than in one lump amount, not imposing late fees or penalties for non-payment of rent, and providing at least a 30-day notice to leave.
Freddie Mac Leadership Shared
“As the pandemic continues, Freddie Mac is providing relief where needed to the multifamily market and renters financially impacted by COVID-19 through this forbearance program,” said Debby Jenkins, head of Freddie Mac Multifamily. “While we have seen only a few loans start a new forbearance program recently, we remain positioned to support the market and renters who may be impacted by the unpredictability of the pandemic going forward.”