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Forbearance for Enterprise-backed Multifamily Mortgages Continues with No Expiration

On September 24, 2021, the Federal Housing Finance Agency (FHFA) announced that it will continue to allow Fannie Mae and Freddie Mac (the Enterprises) to offer COVID-19 forbearance to qualifying multifamily property owners.

Property owners with Enterprise-backed multifamily mortgages may continue to enter into a new or, if qualified, modified forbearance agreement if they experience a financial hardship due to the COVID-19 emergency.

Participating multifamily borrowers must:

  • Notify residents of the protections available to them during the forbearance and repayment periods.
  • Commit to not evicting renters due to nonpayment of rent while the property is in forbearance.
  • Adhere to additional requirements during the repayment period, including providing at least a 30-day notice to vacate, waiving late fees or penalties for nonpayment of rent, and allowing flexibility in repayment of outstanding rent, not in a lump sum.

The extension marks FHFA’s fourth iteration of the program which was first implemented on March 23, 2020. The notice does not indicate an expiration date. On October 1, 2021, FHFA will allow the Enterprises to continue offering COVID-19 forbearance to qualified multifamily owners unless otherwise instructed by FHFA.

To learn more about the options available to multifamily borrowers, contact your loan servicer.

The National Apartment Association (NAA) will continue its federal advocacy with the Administration and help its members manage regulatory compliance. For more information on housing finance policy, please reach out to Sam Gilboard, NAA’s Manager of Public Policy.