FHFA Announces GSEs Will Extend Multifamily Forbearance Agreements, Tenant Protections
Today, the Federal Housing Finance Agency announced that Fannie Mae and Freddie Mac (the Enterprises) will allow servicers of Enterprise multifamily loans to extend forbearance agreements for multifamily property owners for up to three additional months, for a total forbearance period of up to six months. This extension is available for owners of qualified properties with Enterprise-backed multifamily mortgages experiencing financial hardships due to the coronavirus National Emergency.
While the multifamily mortgage loans are in forbearance, landlords must suspend all evictions of tenants unable to pay rent during the forbearance period. Owners obtaining the additional forbearance must also give tenants at least 30-days’ notice to vacate, waive late fees or penalties for nonpayment of rent, and give tenants the flexibility to repay back rent over time and not in a lump sum.