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03-24-20 | Economic News

Multifamily Owners, Renters to Receive FHFA Support

Mortgage Forbearance to Prevent Evictions

The National Association of Home Builders posted the following communique on their website.

To support multifamily property owners and keep apartment renters in their home during the coronavirus national emergency, the Federal Housing Finance Agency (FHFA) announced today that Fannie Mae and Freddie Mac (the Enterprises) will offer multifamily property owners mortgage forbearance with the condition that they suspend all evictions for renters unable to pay rent due to the impact of coronavirus.

The eviction suspensions are in place for the entire duration of time that a property owner remains in forbearance. The forbearance is available to all multifamily properties with an Enterprise-backed performing multifamily mortgage negatively affected by the coronavirus national emergency.

"Renters should not have to worry about being evicted from their home, and property owners should not have to worry about losing their building, due to the coronavirus," FHFA Director Mark Calabria said in an official statement. "The Enterprises are working with mortgage servicers to ensure that these programs are implemented immediately so that property owners and renters experiencing hardship because of the coronavirus can get the assistance they need."

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Other actions announced by the FHFA to ensure the Enterprises fulfill their missions during the coronavirus national emergency include:

Suspending foreclosures and evictions for Enterprise-backed single-family mortgages at least 60 days;

Forbearance for Enterprise-backed single-family borrowers facing hardship due to coronavirus;

Flexibilities for appraisal and employment verifications for single family homes; and

Additional dollar roll transactions for the Enterprises.

FHFA and the Enterprises will continue to monitor the impact of the coronavirus national emergency on the housing finance market and update their policies as necessary.

Additionally, NAHB is continually updating its Coronavirus Preparedness and Response webpage which features an extensive compilation of resources regarding COVID-19 to help guide members through this crisis.

Filed Under: COVID-19, ECONOMICS, NAHB

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