Major forbearance program gets extension

The GSE decides to let multifamily mortgages stay in forbearance for longer

Major forbearance program gets extension

Fannie Mae has announced that it will extend its multifamily COVID-19 forbearance program for four more months.

The program, which bans landlords from evicting COVID-impacted renters until June 30, is now extended through the end of September.

Read more: What’s the impact of the end of forbearance?

“Fannie Mae remains committed to supporting renters and multifamily property owners as COVID-19 continues to financially impact many people in the United States,” said Michele Evans, executive vice president and head of Fannie Mae Multifamily.

Evans added that by extending the forbearance program for property owners, they are also “extending essential protections and flexibilities for renters, which will help keep people in their apartments as the economy continues to improve.”

Read more: 7 red flags that could ruin your mortgage application

Fannie Mae requires property owners with a new or modified forbearance plan to inform tenants in writing about tenant protections available during the property owner’s forbearance and repayment periods. Additionally, they must provide other tenant protections, which include:

  • Giving 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
  • Allowing the tenant at least a 30-day notice to vacate.