GSEs Will Provide Relief to Multifamily Borrowers During COVID-19
Fannie Mae and Freddie Mac announced separately that they would implement a nationwide relief plan for multifamily borrowers and their tenants, in coordination with the Federal Housing Finance Agency. Both GSEs will allow lenders to grant forbearance for up to three months to borrowers experiencing hardship due to the COVID-19 pandemic.
As part of the forbearance plan, borrowers must agree to suspend evictions of tenants who are facing financial hardship due to the current crisis. Both Fannie Mae and Freddie Mac estimate that this will provide relief to some 4.2 million renters.
At Freddie Mac Multifamily, EVP Debby Jenkins said the program was “historic in its size, and it has the potential to provide relief to millions of families.” Fannie Mae SVP Jeffery Hayward said the GSE was well-positioned to react quickly in this situation, thanks to the strength of our delegated model, the Delegated Underwriting and Servicing (DUS) program.”
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