Fannie, Freddie offer multifamily landlords a break — strings attached

Federal mortgage giants will grant borrowers forbearance if they do not evict renters impacted by pandemic

TRD NATIONAL /
Mar.March 23, 2020 02:56 PM
FHFA Director Mark Calabria (Photo by Zach Gibson/Getty Images)

FHFA Director Mark Calabria (Photo by Zach Gibson/Getty Images)

UPDATED, March 24, 2020, 4:29 p.m.: Some relief from the federal government is on the way for multifamily landlords, but it comes with strings attached.

The Federal Housing Finance Agency, which oversees Fannie Mae and Freddie Mac, announced that the two mortgage insurers will give multifamily landlords a break on their loans on the condition that they do not evict any renters impacted by the coronavirus.

The benefit is available to all multifamily properties who have Freddie Mac or Fannie Mae-backed mortgages that are “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 a press release. “The multifamily forbearance and eviction suspension offered by the Enterprises should bring peace of mind to millions of families during this uncertain and difficult time.”

Fannie Mae and Freddie Mac are working with mortgage services to implement the measures immediately, according to the release.

President Donald Trump last week directed HUD to provide similar relief for homeowners, suspending evictions and foreclosures for at least 60 days for single-family homes with mortgages backed by Freddie Mac or Fannie Mae.

Last year, Freddie Mac secured multifamily loans worth $75.5 billion, while Fannie Mae secured more than $70 billion, a record for the agency. Both of the insurers are under government conservatorship.

In New York, the lenders had ramped up their financing of multifamily properties in recent years. The agency secured loans for landlords who were feeling the squeeze even before the coronavirus epidemic, due a bevy of tenant-friendly reforms passed in New York last year.

FHFA’s measure may prove to be at least a temporary lifeline for such properties, an unexpected silver lining for landlords.

CORRECTION: This article previously stated that Freddie Mac secured $68.5 billion in loans. The GSE secured $75.5 billion in loans last year. 


Related Articles

arrow_forward_ios
The decline in contract activity may signal a drop in sales in the coming months (iStock)

Pending homes sales dipped in September

Pending homes sales dipped in September
How tough is Freddie when it comes to protecting landlords and tenants?

How tough is Freddie when it comes to protecting landlords and tenants?

How tough is Freddie when it comes to protecting landlords and tenants?
New foreclosure filings are rising again as limits are lifted (iStock)

Foreclosure filings ramp up, especially in minority neighborhoods

Foreclosure filings ramp up, especially in minority neighborhoods
The MTA board approved rent relief for small businesses in Grand Central and other locations (iStock)

MTA cuts rent up to 90% for small businesses

MTA cuts rent up to 90% for small businesses
New York Community Bank president Joseph Ficalora (Facebook; iStock)

NYC’s largest multifamily lender says rent collections are at pre-pandemic levels

NYC’s largest multifamily lender says rent collections are at pre-pandemic levels
Related chairman Stephen Ross (Getty; iStock; Health Pass) 

Related, Cushman & Wakefield use new app to screen workers for Covid

Related, Cushman & Wakefield use new app to screen workers for Covid
Newark puts restrictions on businesses amid spike in Covid-19 cases (Getty)

Newark restricts businesses again to curb Covid spike

Newark restricts businesses again to curb Covid spike
(Getty, iStock)

Refinancings drove up home mortgage apps last week

Refinancings drove up home mortgage apps last week
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...