Fannie Mae and Freddie Mac are taking steps to support renters in multifamily housing financed by the government-sponsored enterprises (GSEs) during the continued COVID-19 pandemic.
Multifamily property owners with mortgages backed by Fannie Mae or Freddie Mac who enter into a new, extended, or amended forbearance agreement must inform their residents in writing about the tenant protections during the forbearance and repayment periods. While in forbearance, property owners must agree not to evict tenants solely for rent nonpayment.
“Landlords in forbearance must notify their tenants that they cannot be evicted for nonpayment of rent due to the pandemic,” said Mark Calabria, director of the Federal Housing Finance Agency. “If tenants are able to pay their rent, they should continue to do so.”
The GSEs also are continuing to improve their online multifamily property loan lookup tools to make it easier for renters to see if the property where they reside has a Fannie- or Freddie-backed mortgage.
By Aug. 10, Freddie Mac Multifamily’s lookup tool will be searchable by ZIP code, which will eliminate the need for renters to include property-specific details.
“Our goal in launching these initiatives is to ensure that renters can easily learn of or proactively determine what tenant protections might apply to their unique circumstances,” said Debby Jenkins, head of Freddie Mac Multifamily. “We have continually worked to improve our lookup tool to ensure renters can determine if CARES Act protections apply to their home. We have also worked to ensure that when we extend support to borrowers who are struggling, they in turn extend flexibility to their residents.”
Fannie Mae also is updating its Renters Resource Finder and will provide information that may be helpful for renters, including how they can find assistance options that may be available if they live in a multifamily property financed by the company. For example, Fannie Mae has the Disaster Response Network, which offers free resources through Money Management International for residents living in Fannie-financed apartments. The Disaster Response Network can help provide a personalized recovery assessment and action plan, financial coaching, and ongoing check-ins to those who have been impacted financially by COVID-19.
