Presented By: Fannie Mae
Navigating the Multifamily Market During COVID-19?
Resources for multifamily lenders and borrowers
By Fannie Mae July 27, 2020 9:48 amreprints
In these uncertain times, multifamily lenders and borrowers ― and their renters ― may be experiencing the financial impact of COVID-19. Finding resources to help affordable rental communities keep people in their apartments is crucial. Having a safe and stable place to live is more important than ever.
Assisting multifamily lenders and borrowers as they navigate this new landscape is at the core of Fannie Mae’s latest educational effort. A leading provider of financing to the nation’s rental housing market, Fannie Mae has launched their Here to Help program to provide up-to-date information, videos, and resources for multifamily lenders and borrowers — and their renters. It’s support you can count on during COVID-19.
During this time, Fannie Mae’s commitment to providing stability in the marketplace remains solid. Their Delegated Underwriting and Servicing (DUS®) model was designed to withstand changes and survive challenging markets, and it is delivering during COVID-19. DUS is working every day in the marketplace because lenders and Fannie Mae share the risk. In addition, Fannie Mae’s portfolio remains strong, and their Capital Markets Desk is open.
Helping lenders help customers
With the Here to Help program, lenders can easily learn about changes Fannie Mae made to assist them during COVID-19. These include:
- – Changes to credit terms and guidance.
- – Modified site inspection requirements.
- – New processes for digital loan document delivery.
- – Reallocating staff to help DUS lenders manage increasing forbearance requests.
Assistance for borrowers
COVID-19 has affected millions of people nationwide through the loss of jobs or income. With renters struggling to pay rent, borrowers may be having a hard time making monthly payments. In such cases, mortgage lenders may be able to offer them forbearance relief. Fannie Mae’s Here to Help program has resources and the latest information for DUS lenders looking to grant forbearance to their borrowers. Additionally, borrowers can learn about the new forbearance guidelines.
Recently, DUS lenders were delegated the decision to extend existing forbearances for multifamily borrowers by three months, for a total forbearance of up to six months. If extended, once the forbearance period concludes, the borrower may qualify for up to 24 months to repay the missed payments. Fannie Mae waives charging lenders late fees/default interest and encourages lenders not to charge borrowers. In consideration of the forbearance, borrowers agree to certain protections for their renters.
Support for renters
If your renters are among the millions of people struggling to pay rent in the current economic climate, you are not alone. With the Fannie Mae Here to Help program, all renters, whether in a Fannie Mae-financed rental building or not, can find reliable information, useful tips, and guidance. They can learn more about the CARES Act, which provides various forms of relief from difficulties related to COVID-19, including housing hardship. They can also find ways to access local resources for COVID-19 assistance.
When a DUS lender grants forbearance to a multifamily borrower, tenants are protected under the CARES Act, and evictions for nonpayment of rent must be postponed. The Here to Help renters section makes it easy for people to access the CARES Act for complete information on its provisions.
Renters in Fannie Mae-financed properties who are experiencing hardships also have access to the Fannie Mae Disaster Response Network™. This service offers free support from housing counselors approved by the U.S. Department of Housing and Urban Development (HUD). A HUD-approved counselor can assist them with a personal recovery assessment and action plan, work with them on their housing situation, and more. Renters can see if their building is financed by Fannie Mae by using Fannie Mae’s Renters Resource Finder.
For lenders and borrowers needing support during COVID-19, the objective of the Fannie Mae Here to Help program is to be with you every step of the way.
We are all in this together. It’s never been more important to assure a supply of affordable rental housing across the country. Check out Fannie Mae’s Here to Help multifamily information and resources today.