The Federal Housing Finance Agency (FHFA) announced Monday that Fannie Mae and Freddie Mac will offer multifamily property owners mortgage forbearance with the condition that they suspend all evictions for renters unable to pay rent due to the impact of coronavirus.
The eviction suspensions are in place for the entire duration of time that a property owner remains in forbearance. The forbearance is available to all multifamily properties with an Enterprise-backed performing multifamily mortgage negatively affected by the coronavirus national emergency.
“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. The multifamily forbearance and eviction suspension offered by the Enterprises should bring peace of mind to millions of families during this uncertain and difficult time,” said Director Mark Calabria. “The Enterprises are working with mortgage servicers to ensure that these programs are implemented immediately so that property owners and renters experiencing hardship because of the coronavirus can get the assistance they need.”
The multifamily mortgage forbearance and eviction suspension programs are the latest actions that FHFA has announced to ensure the Enterprises fulfill their missions during the coronavirus national emergency. Other actions include:
- Suspending foreclosures and evictions for Enterprise-backed single-family mortgages at least 60 days;
- Forbearance for Enterprise-backed single-family borrowers facing hardship due to coronavirus;
- Flexibilities for appraisal and employment verifications for single family homes; and
- Additional dollar roll transactions for the Enterprises.
National Multifamily Housing Council (NMHC) President Doug Bibby welcomed the FHFA action. “This crisis is testing all of us – every industry, every family,” said Bibby. “No one should lose the roof over their head during a pandemic.”
He continued, “We welcome the Federal Housing Finance Agency’s decision today to offer mortgage forbearance to multifamily housing property owners who suspend evictions for those who have been financially impacted by this public health emergency. This is a necessary step. Most property owners are small businesses and they are committed to working with public officials and residents to keep families safe during this national crisis.”
