First, for our community owners who might have their communities financed through Freddie Mac’s multifamily commercial loan programs, this morning Freddie announced a program allowing 90-day deferment of loan payments by showing hardship as a consequence of COVID-19 and by gaining lender approval. In turn, Freddie Mac is requiring landlords not to evict any tenant based solely on non-payment of rent during the forbearance period.
The details of this program are still evolving, but Freddie has made their servicers aware of this program. They say they are modeling this after a similar program they implemented after recent natural disasters. At this point, the actionable item for anyone who has a Freddie back commercial loan is to contact your loan servicer to find out more and how to get started.
In very similar news, Fannie Mae also announced today a similar deferment program. Fannie Mae is also 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 their forbearance plan, borrowers must also agree to suspend evictions of tenants who are facing financial hardship due to the current crisis.
For those community owners with Fannie back loans, contact your loan servicer to learn more.