Forbearance for Multifamily Mortgages that Don’t Evict
WASHINGTON – The Federal Housing Finance Agency (FHFA) announced that Fannie Mae and Freddie Mac will offer multifamily property owners mortgage forbearance with one condition – that they suspend all evictions for renters unable to pay rent due to the impact of coronavirus.
FHFA says its goal is to “keep renters in multifamily properties in their home and to support multifamily property owners during the coronavirus national emergency.”
The eviction suspensions will remain in place for the entire time a property owner’s loan is in forbearance, and the option is available to any multifamily property owner that has a mortgage negatively affected and held by Fannie Mae or Freddie Mac.
“Renters should not have to worry about being evicted from their home, and property owners should not have to worry about losing their building, due to the coronavirus,” says Director Mark Calabria. “The multifamily forbearance and eviction suspension offered by (Fannie Mae and Freddie Mac) should bring peace of mind to millions of families during this uncertain and difficult time.
Calabria says Fannie and Freddie are working with the companies that service the multifamily mortgages “to ensure these programs are implemented immediately.”
The multifamily mortgage forbearance and eviction suspension programs are the latest actions FHFA. Other actions include:
- Suspending foreclosures and evictions for Fannie/Freddie-backed single-family mortgages at least 60 days
- Forbearance for Fannie/Freddie-backed single-family borrowers facing hardship due to coronavirus
- Flexibilities for appraisal and employment verifications for single family homes
- Additional dollar roll transactions for Fannie/Freddie
FHFA and the Enterprises will continue to monitor the impact of the coronavirus national emergency on the housing finance market and update our policies as necessary.
Visit FHFA.gov/coronavirus for more information on mortgage help available for impacted homeowners.
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