Presented By: Fannie Mae
How Fannie Mae Is Helping Lenders and Their Borrowers Through Challenging Times
In these unusual times, multifamily lenders and borrowers ― and their renters ― may be experiencing the financial impacts 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 adjust to this landscape is at the core of Fannie Mae’s educational effort. A leading provider of financing to the nation’s rental housing market, Fannie Mae’s Here to Help program provides up-to-date information, videos, and resources for multifamily lenders and borrowers — and their renters. It’s support you can count on during the pandemic.
“Our Delegated Underwriting and Servicing (DUS) model was designed to withstand changes and survive challenging markets, and it is delivering during COVID-19,” said Michele Evans, executive vice president and head of multifamily at Fannie Mae. “DUS is working every day in the marketplace because lenders and Fannie Mae share the risk. I’d like to thank our lenders and their borrowers for their continued partnership and dedication.”
Helping lenders help customers
With the Here to Help program, lenders can easily learn about ways Fannie Mae is helping borrowers and their tenants during COVID-19 and beyond. This includes forbearance guidelines, state and local resources and relief efforts, and more. Multifamily forbearance guidelines have been extended through June 30, 2021, to address the current challenges.
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 forbearance guidelines and state and local resources to help their renters. Property owners can enter a new or, if qualified, modified forbearance if they experience a financial hardship due to the COVID-19 emergency. Property owners who enter into a new or modified forbearance agreement must:
- – inform tenants in writing about tenant protections available during the property owner’s forbearance and repayment periods; and
- – agree not to evict tenants solely for the nonpayment of rent while the property is in forbearance.
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 state and local resources for tenant protection and relief programs.
When a DUS lender grants forbearance to a multifamily borrower, tenants are protected, and evictions for nonpayment of rent must be postponed. The Here to Help renters section makes it easy for people to access information and resources.
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.