Multifamily | COVID-19
Multifamily's response to COVID-19
The Multifamily team is here to support our lender customers, property owners, and their residents. We’re focused on the health and well-being of our employees, customers, and communities, and we urge everyone to take precautions to protect themselves. Continuing to fulfill our mission for the housing market is our priority. We are fully operational, open for business, and doing everything we can to support our partners.
Help for Lenders:
After the passage of the Coronavirus Aid, Relief, and Economic Security Act (CARES Act), we have updated our forbearance guidance to align with this new legislation:
- Lenders are delegated the authority to grant forbearances, if requested by a Borrower, for up to 3 monthly payments for any loan that was current as of February 1, 2020. This delegation of forbearance is effective until August 31, 2020.
- Borrowers will repay any missed payments in equal monthly installments over 12 months, beginning at the end of the forbearance period. Repayment may also occur sooner. Fannie Mae is waiving any late fees or default interest due.
- The Borrower will provide the Lender documentation outlining the financial hardship on the property’s operation and performance. This documentation also requires that the Borrower remit all excess cash flow to the Lender after paying operating expenses.
- In return for forbearance, Borrowers agree to suspend evictions of tenants for non-payment of rent. This eviction moratorium covers any new evictions or the continued pursuit of current evictions already in process.
- The Borrower must remain in compliance with all other terms and conditions of the loan and will also comply with all applicable laws and regulations. Any questions pertaining to applicable laws and regulations should be raised with their legal counsel.
- A Pre-Negotiation Letter is not required to enter into a forbearance agreement but must be in place for any ongoing discussions with the Borrower regarding relief on the loan.
Help for Renters:
If you are a renter and live in an apartment financed by Fannie Mae, we can help you navigate your financial challenges with the Disaster Response Network (DRN). The DRN offers support from HUD-approved housing counselors, such as a personalized recovery assessment and action plan, financial coaching and budgeting, and ongoing check-ins. Please contact your property manager or building owner for more information. We have posted a link to a printable flyer for Borrowers to share with their renters.
We are staying in communication with the Federal Housing Finance Agency to address any potential impacts to our employees and business operations. For more information on our COVID-19 resiliency strategies, visit the Fannie Mae Enterprise Approach to COVID-19 webpage.
Let’s keep the lines of communication open as we move through these unprecedented times. All of us in Multifamily are keeping all of you in our thoughts and wishing you continued health.