COVID-19: FHFA Extends Multifamily Forbearance Indefinitely | Practical Law

COVID-19: FHFA Extends Multifamily Forbearance Indefinitely | Practical Law

The Federal Housing Finance Agency has indefinitely extended COVID-19 forbearance options for multifamily mortgages backed by Fannie Mae and Freddie Mac.

COVID-19: FHFA Extends Multifamily Forbearance Indefinitely

Practical Law Legal Update w-032-7817 (Approx. 2 pages)

COVID-19: FHFA Extends Multifamily Forbearance Indefinitely

by Practical Law Real Estate
Law stated as of 28 Sep 2021 • USA (National/Federal)
The Federal Housing Finance Agency has indefinitely extended COVID-19 forbearance options for multifamily mortgages backed by Fannie Mae and Freddie Mac.
The Federal Housing Finance Agency (FHFA) has indefinitely extended COVID-19 forbearance options for multifamily mortgages backed by Fannie Mae and Freddie Mac (the GSEs). The forbearance programs had been set to expire on September 30, 2021 and this is the fourth extension of the programs.
To access these forbearance programs, landlords with GSE-backed multifamily mortgages must:
  • Inform tenants in writing about tenant protections available during the landlord's forbearance and repayment periods.
  • Agree not to evict tenants solely for nonpayment of rent while the property is in forbearance.
  • Allow tenants flexibility to repay back rent over time rather than in a lump sum.
  • Not charge tenants late fees or penalties for non-payment of rent.
  • Give tenants at least a 30-day notice to vacate.
The GSEs have posted the tenant protections to their respective online multifamily property lookup tool websites. The property lookup tools assist tenants in finding if the multifamily property they live in has a GSE-backed mortgage.
Homeowners and renters can visit consumerfinance.gov/housing for up-to-date information on their relief options, protections, and key deadlines.

Practical Implications

This most recent extension of access to COVID-19 forbearance programs will provide support for both landlords and tenants as recovery from the COVID-19 pandemic continues.
For a continuously updated collection of real estate resources addressing COVID-19, see Practical Law's Real Estate Global Coronavirus Toolkit.