Here to Help Multifamily
We're Here to Help our DUS Lenders and their Borrowers every step of the way
Today’s uncertainty has affected every aspect of life in America, but one thing is for sure: the work of DUS® lenders and multifamily borrowers is more necessary than ever to keep renters in their homes. You can count on Fannie Mae’s expertise and support to help navigate new policy and relief programs as efficiently as possible.
What’s Changed for DUS Lenders
Multifamily forbearance guidelines have been extended through June 30, 2021 to address the current challenges. DUS lenders have been delegated the decision to extend existing forbearances for multifamily borrowers by three months, for a total forbearance of up to six months if their customer’s ability to pay has been affected by COVID-19-related hardships. Read more policy changes here.
Updates on Multifamily Forbearance
COVID-19 (Coronavirus) has affected millions of Americans, through the loss of a job or income, or illness. If borrowers are having a hard time making their monthly payments, mortgage lenders can offer relief. As a DUS lender, you can grant forbearance to a customer with the delegation Fannie Mae provided you through June 30, 2021. As a borrower, you can provide renters with much-needed housing support.
What’s Changed for Borrowers
Multifamily borrowers may have access to forbearance and relief through their DUS Lenders. Under new guidelines the borrower may qualify for up to 24 months to repay the missed payments. In return, the borrower must suspend all evictions for renters solely for nonpayment of rent during the forbearance period.
For Fannie Mae-financed multifamily properties with a new or extended forbearance, the borrower is required to provide the following renter 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.
If you are a multifamily borrower who is helping house America and facing financial challenges at this time, speak with your DUS Lender about forbearance and how it can help you and your renters.
Support is also available for your renters who might be experiencing hardships related to COVID-19. Encourage them to explore their options by visiting the Renters Resource Finder. The tool is easy to use – multifamily renters simply input their address, which matches them with applicable resources that may be helpful. We also have a printable flyer for you to share with your renters and place at your properties. This includes information about our Disaster Response network, and is also available in Spanish.
In addition, on March 11, 2021 Congress passed the American Rescue Plan which includes $21.55 billion in Emergency Rental Assistance. This assistance for renters provides further relief to the $25 billion in Emergency Rental Assistance that was included in the Consolidated Appropriations Act passed in December of 2020.
The Emergency Rental Assistance provision provides funds for eligible renters and landlords to cover rent, rental arrears, utilities, home energy costs, and other housing-related expenses with a maximum of 18 months of assistance per eligible household. Funds will be distributed to state and local governments for this purpose via the U.S. Department of Treasury. Renters should still visit https://www.fanniemae.com/here-help-renters for the most accurate and up to date information.
Now more than ever, the successful partnership between DUS Lenders and Fannie Mae can help borrowers and renters. We are open for business, and we are helping keep the rental housing market operating remotely, in this new reality, by temporarily modifying Guide requirements for property inspections, and amending the loan document delivery process. We are also working on creating ways for appraisers to do their job without having to physically go inside the property.
To stay up to date on new guidelines, documents and forms, access our Lender Communications. And if you have any questions regarding how to proceed during this time, don’t hesitate to reach out to your Deal Team.
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