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
Effective October 1, all requests for forbearance relief related to COVID-19 will follow normal loss mitigation processes. While the forbearance program is extended indefinitely to provide continued support to property owners experiencing difficulties due to COVID-19, Lender delegation is no longer in effect. Multifamily Borrowers who are experiencing hardship should contact their servicer to discuss available options. Read more policy changes here.
What Borrowers Need to Know
The CARES Act requires multifamily borrowers with a loan held by Fannie Mae to give renters at least 30 days’ notice to vacate before requiring the tenant to vacate a unit for nonpayment of rent.
Multifamily borrowers may have access to forbearance and relief through Fannie Mae. Borrowers in need of forbearance or other relief should contact their servicer to discuss available options with Fannie Mae. In return, the borrower must suspend all evictions for renters solely for nonpayment of rent during the forbearance period.
For Fannie Mae properties with a new or extended COVID-19 forbearance plan, the Borrower may not evict tenants solely for the nonpayment of rent while the property is in forbearance and must 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;
- No late fees or penalties for non-payment of rent; and
- Giving 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 recovery counseling service.
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.
Fannie Mae makes no representations, warranties or promises for, and disclaims any express or implied warranties related to, the contents or third-party websites.