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Freddie Mac Multifamily extended the deadline for requesting a new COVID-19 forbearance agreement for its Multifamily loans to September 30, 2021. The program, previously set to terminate June 30, 2021, was extended to provide additional time for multifamily operators experiencing hardship as a result of the pandemic.
The new forbearance agreement includes renter protections such as a moratorium on evictions for non-payment of rent. Borrowers experiencing hardship may also request additional relief at the end of the initial forbearance period.
Renters are notified of all tenant protections. Renters may not be evicted or given notice of eviction for nonpayment of rent during the forbearance period. They must not be charged late fees, penalties or other charges related to nonpayment. Although rental payments will continue to be due and will accrue, renters in properties with forbearance agreements must be provided flexibility in repayment of back rent, allowing for it to be paid over a period of time and not in a lump sum. Additional protections are listed in Freddie Mac’s report.
Under Freddie Mac’s Forbearance Relief program, multifamily landlords whose properties are financed with a Freddie Mac Multifamily loan can defer their loan payments by showing hardship as a result of COVID-19 and by gaining lender approval.
Freddie Mac continues to create tools to aid borrowers and renters throughout the pandemic, although, as a secondary mortgage market participant, they have no direct relationship to borrowers or renters. This includes a loan look-up tool to help renters understand whether they reside in a multifamily property. They also offer a hotline staffed by HUD-certified counselors for renters facing financial distress as a result of the pandemic.
Requests for new or additional forbearance have dropped to just a handful in recent months. There are currently 1,154 forborne securitized loans, representing about 2.1% of the total securitized unpaid principal balance. More than 82% by loan count are currently making payments or have fully repaid their forborne payments.