March 24, 2020Fannie Mae Provides Assistance to Help Renters Impacted by COVID-19 Stay in Their Apartments
Note: This guidance was updated due to the CARES Act. Please refer to Fannie Mae Multifamily Lender Letter 20-05 for guidance as of April 6, 2020.
WASHINGTON, DC – Fannie Mae (FNMA/OTCQB) wants to help ensure families who are renting in multifamily properties are able to remain in their apartments during these unprecedented times. In coordination with the Federal Housing Finance Agency (FHFA), Fannie Mae is allowing lenders to grant forbearance to borrowers in properties financed by Fannie Mae for up to three months if the borrower is experiencing hardship due to the impact of the COVID-19 national emergency. As part of the forbearance plan, borrowers must agree to suspend evictions of tenants who are facing financial hardship due to the current crisis. Fannie Mae anticipates that this will provide relief to renters across more than 27,000 properties.
"We are looking to provide relief to millions of families and communities who are affected by the devastating impact of COVID-19," said Jeffery Hayward, Executive Vice President of Multifamily, Fannie Mae. "We are well-positioned to react quickly in this situation thanks to the strength of our delegated model, the Delegated Underwriting and Servicing (DUS®) program. We want multifamily property owners and renters to know that we are here to help."
Fannie Mae's Disaster Response Network™ (DRN), a free resource provided through Money Management International (MMI) is available for property residents living in apartments financed by a Fannie Mae DUS lender, if they need assistance during this time. The DRN offers support from HUD-approved housing counselors*, such as a personalized recovery assessment and action plan, financial coaching and budgeting, and ongoing check-ins to place them on a path to recovery. Residents can check with their property manager or building owner for more information.
For updated information on our efforts around COVID-19, visit our Multifamily COVID-19 Response page: https://multifamily.fanniemae.com/multifamily-covid-19.
About Fannie Mae
Fannie Mae helps make the 30-year fixed-rate mortgage and affordable rental housing possible for millions of Americans. 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:
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*Operated by Clearpoint Credit Counseling Solutions, a division of MMI, through its Project Porchlight program