Fannie Mae Announces Updated Protections for Renters Impacted by COVID-19
Multifamily Borrowers Now Eligible to Repay Missed Payments over 24 Months
WASHINGTON, DC – To assist renters in multifamily units and support Fannie Mae-financed multifamily property owners experiencing difficulties during this period of financial uncertainty, Fannie Mae (FNMA/OTCQB) today 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."
Here to Help
Since March, Fannie Mae has taken a number of actions to help renters facing financial hardship due to COVID-19, including extending eviction protections to multifamily renters when the property owner received a forbearance and announcing a new Renters Resource Finder tool.
These and the many other resources, including KnowYourOptions.com, that we make available are part of our ongoing Here to Help education effort, aimed at helping homeowners and renters impacted by COVID-19 understand the options available to them. For renters, KnowYourOptions.com provides straightforward information to understand rent relief and assistance options and to understand your rights as a tenant.
Renters in a multifamily property financed by Fannie Mae also have access to the Disaster Response Network's HUD-approved housing counselors who can help navigate the broader financial challenges many are facing. The Disaster Response Network can be accessed from the Renters Resource Finder on KnowYourOptions.com, or by calling 877-833-1746.
About Fannie Mae
Fannie Mae helps make the 30-year fixed-rate mortgage and affordable rental housing possible for millions of Americans. We partner with lenders to create housing opportunities for families across the country. We are driving positive changes in housing finance to make the home buying process easier, while reducing costs and risk. To learn more, visit:
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