To assist renters in multifamily units and support Fannie Mae-financed multifamily property owners experiencing difficulties during this period of financial uncertainty, Fannie Mae announced updated renter protections and forbearance extensions for borrowers.
Fannie Mae’s Delegated Underwriting and Servicing (DUS®) lenders have been delegated the decision to extend existing forbearances for multifamily property owners by three months, for a total forbearance of up to six months. If extended, once the forbearance period concludes, the borrower may qualify for up to 24 months to repay the missed payments. While in forbearance, the landlord must suspend all evictions for renters unable to pay rent.
For Fannie Mae-financed multifamily properties with a new or extended forbearance, the borrower is required to provide the following tenant protections during the repayment period:
– Allow the tenant flexibility to repay back rent over time and not in a lump sum;
– Not charge the tenant late fees or penalties for non-payment of rent; and
– Give the tenant at least a 30-day notice to vacate.
“Fannie Mae is pleased to announce the latest tenant protections offered to multifamily renters impacted by COVID-19, including the ability for an impacted renter to repay owed rent over time and not all at once,” said Jeff Hayward, executive vice president, Multifamily. “Further, by offering our multifamily borrowers a forbearance extension up to six months, as well as updated repayment schedules that allow repayment to take place over 24 months, we believe we’re continuing to offer common-sense solutions that work for everyone during these unprecedented times.”
Source: Fannie Mae