Fannie Mae and Freddie Mac are allowing servicers to extend forbearance agreements for multifamily property owners with existing forbearance agreements for up to three months, for a total forbearance of up to six months. While the properties are in forbearance, landlords must suspend all evictions for renters unable to pay rent.
“During the pandemic, FHFA has been focused on protecting renters and borrowers while ensuring the mortgage market functions as efficiently as possible,” FHFA Director Mark Calabria said in a news release. “The multifamily mortgage forbearance extension announced today will help renters stay in their homes and help property owners retain their properties.”
The forbearance extension is available for qualified properties with a government-sponsored enterprise-backed multifamily mortgage experiencing a financial hardship because of the coronavirus national emergency.
If a forbearance is extended, once the forbearance period concludes the borrower may qualify for up to two years to repay the missed payments. In addition, if the forbearance is extended, the repayment schedule is modified, or a new forbearance agreement is executed, the borrower is required to provide the following tenant protections during the repayment period:
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