Fannie Mae Extends Multifamily Protections for Renters Indefinitely

Rhea-AI Summary

Fannie Mae (OTCQB: FNMA) announced an indefinite extension of its multifamily COVID-19 forbearance program, originally set to expire on September 30, 2021. The program aims to support multifamily property owners and renters facing financial hardships due to COVID-19. Key provisions include suspension of evictions for nonpayment during forbearance, flexible repayment options for tenants, and the absence of late fees. This initiative reflects Fannie Mae's commitment to providing ongoing support as economic uncertainties persist.

Positive

• Indefinite extension of the multifamily COVID-19 forbearance program supports property owners and renters.
• Suspension of evictions ensures tenant protections during financial hardships.

Negative

• None.

WASHINGTON, Sept. 24, 2021 /PRNewswire/ -- Fannie Mae (OTCQB: FNMA) today announced its multifamily COVID-19 forbearance program has been extended indefinitely to provide continued support for Fannie Mae-financed multifamily property owners and renters in multifamily units experiencing financial difficulties due to COVID-19. The program, which requires landlords to suspend all evictions for renters unable to pay rent during the forbearance period, was formerly set to expire on September 30, 2021.

"As financial and economic uncertainties around COVID-19 persist, Fannie Mae is committed to providing continued forbearance options for Fannie Mae multifamily borrowers," said Michele Evans, Executive Vice President and Head of Multifamily. "This will allow for the continuation of essential tenant protections to help keep renters in their apartments as the recovery process continues." 

For any Fannie Mae-financed multifamily properties with a new or modified COVID-19 forbearance plan, the property owner must agree not to evict tenants solely for the nonpayment of rent while the property is in forbearance and 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;
• Not charging the tenant late fees or penalties for non-payment of rent; and
• Giving the tenant at least a 30-day notice to vacate.

Here to Help
Since March 2020, 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 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 the available tenant protections.

Renters also have access to Fannie Mae's Disaster Response Network, which offers free assistance from U.S. Department of Housing and Urban Development-certified housing counselors who can help navigate financial challenges caused by COVID-19, such as information and guidance on accessing federal and state housing assistance, unemployment benefits, nutritional assistance, and other available programs. 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 people in America. 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:
fanniemae.com | Twitter | Facebook | LinkedIn | Instagram | YouTube | Blog

Fannie Mae Newsroom
https://www.fanniemae.com/news

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Fannie Mae Resource Center
1-800-2FANNIE

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SOURCE Fannie Mae

FAQ

What is Fannie Mae's COVID-19 forbearance program extension date?

Fannie Mae's COVID-19 forbearance program has been extended indefinitely.

What protections do tenants have under Fannie Mae's forbearance program?

Tenants are protected from evictions for nonpayment, can repay back rent over time, and will not incur late fees.

How does Fannie Mae support renters during the COVID-19 crisis?

Fannie Mae provides resources such as the Renters Resource Finder and access to housing counselors through its Disaster Response Network.

Who is the Executive Vice President of Fannie Mae’s Multifamily division?

Michele Evans is the Executive Vice President and Head of Multifamily at Fannie Mae.

What should property owners do under the COVID-19 forbearance plan?

Property owners must agree not to evict tenants for nonpayment during forbearance and inform tenants of their rights.