Thank you for your on-going partnership as we adapt to the changing environment in meeting the needs of the market through the effects of the COVID-19 pandemic. We continue to make necessary adjustments and to provide you with the information needed in these changing market conditions. We could not have responded to the pandemic without your partnership and assistance. We are thankful to have partners like you who rise to the occasion when called upon for help.
As announced last week, effective October 1, all requests for forbearance relief related to COVID-19 will follow normal loss mitigation processes. While the forbearance program is extended indefinitely to provide continued support to property owners experiencing difficulties due to COVID-19, Lender delegation is no longer in effect. Multifamily Borrowers who are experiencing hardship should contact their servicer to discuss available options.
For Fannie Mae properties with a new or extended COVID-19 forbearance plan, the Borrower may not evict tenants solely for the nonpayment of rent while the property is in forbearance and must 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;
- No late fees or penalties for non-payment of rent; and
- Giving the tenant at least a 30-day notice to vacate.
Assistance for Renters
Our Renters Resource webpage provides options for relief, information on our Renters Resource Finder tool, and access to Disaster Response Network counselors who can guide renters toward even more resources.
Emergency Rental Assistance through the American Rescue Plan is still available across the country to assist landlords and renters who are behind on their rental payments. The Consumer Financial Protection Bureau’s lookup tool, the Rental Assistance Finder provides links for renters and landlords to access local programs offering assistance and includes information to help navigate various financial hardships that they may be facing related to the pandemic.
Fannie Mae requires Borrowers to comply with all applicable laws, including eviction protections and that Borrowers will pursue access to available Emergency Rental Assistance. Additionally, we expect that Lenders will work with their counsel to understand these laws and respond to any reports of potential non-compliance.
We thank you for all of your efforts as we continue to work together to address the needs of renters. The COVID-19 pandemic continues to present challenges, but we are here to help you and the renters that we ultimately serve.