Multifamily Borrowers Remain Eligible for COVID-19-related Forbearance
Fannie Mae (OTCQB: FNMA) today announced its multifamily COVID-19 forbearance program has been extended indefinitely to provide continued support for Fannie Mae-financed multifamily property owners and renters in multifamily units experiencing financial difficulties due to COVID-19. The program, which requires landlords to suspend all evictions for renters unable to pay rent during the forbearance period, was formerly set to expire on September 30, 2021.
“As financial and economic uncertainties around COVID-19 persist, Fannie Mae is committed to providing continued forbearance options for Fannie Mae multifamily borrowers,” said Michele Evans, Executive Vice President and Head of Multifamily. “This will allow for the continuation of essential tenant protections to help keep renters in their apartments as the recovery process continues.”
For any Fannie Mae-financed multifamily properties with a new or modified COVID-19 forbearance plan, the property owner must agree not to evict tenants solely for the nonpayment of rent while the property is in forbearance and inform tenants in writing about tenant protections available during the property owner’s forbearance and repayment periods, which include:
- Allowing the tenant flexibility to repay back rent over time and not in a lump sum;
- Not charging the tenant late fees or penalties for non-payment of rent; and
- Giving the tenant at least a 30-day notice to vacate.
Here to Help
Since March 2020, Fannie Mae has taken a number of actions to help renters facing financial hardship due to COVID-19, including extending eviction protections to multifamily renters when the property owner received a forbearance and announcing a Renters Resource Finder tool.
These and the many other resources, including KnowYourOptions.com, that we make available are part of our ongoing Here to Help education effort, aimed at helping homeowners and renters impacted by COVID-19 understand the options available to them. For renters, KnowYourOptions.com provides straightforward information to understand rent relief and assistance options and to understand the available tenant protections.
Renters also have access to Fannie Mae’s Disaster Response Network, which offers free assistance from U.S. Department of Housing and Urban Development-certified housing counselors who can help navigate financial challenges caused by COVID-19, such as information and guidance on accessing federal and state housing assistance, unemployment benefits, nutritional assistance, and other available programs. The Disaster Response Network can be accessed from the Renters Resource Finder on KnowYourOptions.com, or by calling 877-833-1746.
About Fannie Mae
Fannie Mae helps make the 30-year fixed-rate mortgage and affordable rental housing possible for millions of people in America. We partner with lenders to create housing opportunities for families across the country. We are driving positive changes in housing finance to make the home buying process easier, while reducing costs and risk. To learn more, visit:
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