FHFA Extends COVID-19 Forbearance for Multifamily
Multifamily property owners with a Fannie or Freddie loan will be offered forbearance indefinitely. In exchange, they must follow rules that limit tenant evictions.
WASHINGTON – The Federal Housing Finance Agency (FHFA) announced that mortgage financing giants Fannie Mae and Freddie Mac will continue to offer forbearance indefinitely to qualifying multifamily property owners.
It’s FHFA’s fourth program extension. The latest extension was set to expire this Thursday, Sept. 30.
“Given the uncertain nature of this pandemic, the FHFA is taking further action to protect renters, property owners, and the mortgage market,” says Sandra L. Thompson, FHFA acting director.
Property owners with Fannie Mae- or Freddie Mac-backed multifamily mortgages can enter a new or modified forbearance if they experience a financial hardship due to the pandemic’s impact on their business operations. If they choose to do so, property owners must inform tenants in writing about tenant protections available during the forbearance and repayment periods. They also must agree not to evict tenants for nonpayment of rent while the property is in forbearance.
Additional tenant protections are in place when the repayment period starts.
For more information, visit consumerfinance.gov/housing on relief options.
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