FHFA Offers Mortgage Relief for Multifamily Housing Property Owners
The Federal Housing Finance Agency (FHFA) on March 23 announced that Fannie Mae and Freddie Mac, the Enterprises will offer mortgage forbearance for multifamily property owners, under the condition that they suspend all evictions for renters who are unable to pay rent because of COVID-19, also known as “coronavirus.”
To be eligible, property owners must suspend evictions for as long as the owner remains in forbearance. Forbearance is available only for multifamily housing properties with an “Enterprise-backed performing multifamily mortgage” that is financially impacted by coronavirus.
We will continue to update you as FHFA, Fannie Mae and Freddie Mac release information about implementation of this decision. For owners who believe they qualify, contact your loan servicer to learn more about the process to seek relief.
Continue to bear in mind that states and localities are pushing eviction moratoriums, applicable to all privately-owned housing. Nationally, almost 70 jurisdictions announced eviction moratoriums, with some attempting to provide relief to owners and operators. For example, Governor Phil Murphy of New Jersey is encouraging any financial institution holding residential or commercial mortgages, equity loans, lines of credit or business loans to implement a process to work with the mortgagors or loan holders to avoid foreclosure or default arising out of financial hardship caused by the COVID-19 pandemic, or by any local, state, or federal government response to COVID-19.
We have developed a research report to help you navigate this patchwork of mandates, including information on eviction, rent increase restrictions, late fees and shelter-in-place orders. Please visit NAA’s Resources and Guidance for COVID-19 where you can find a link to our policy concerns page to learn more.