The Federal Housing Finance Agency on Wednesday gave property owners more leeway to defer payments on multi-family mortgages for coronavirus-related issues if they also provide relief to their tenants.
"Due to the continued presence of COVID-19 in our communities and its disproportionate impact on tenants, the FHFA will extend the apartment building leniency offer and tenant protection beyond the end of the year and into the first quarter of 2021," said director Mark Calabria in one Press release.
The announcement by the regulator and the curator of government sponsored corporations followed a call by the Conference of State Banking Regulators for a clearer advance notice of state grace periods.
Forbearance recipients for apartment buildings may not impose fines or evictions for evictions only for non-payment. You must provide all tenants with written notice of rights, flexibility in repayment and, if applicable, 30 day notice periods under the FHFA. The repayment of the rent back over time should "not necessarily" be made in a lump sum.
Congress has agreed on an aid bill designed to provide wider rent and other support for troubles related to the pandemic, including an expanded eviction ban. At the time of going to press, however, President Trump had yet to sign it. There are also other coronavirus-related contingent liabilities for rental and condominium markets in certain countries.
For single-family loans, indulgences related to coronavirus-related difficulties are increasingly being offered through the Fannie Mae and Freddie Mac programs, spokesmen for the two GSEs said Tuesday.
In addition, at the beginning of this month the FHFA extended the eviction ban for foreclosures on single-family houses and properties owned by real estate until “at least” January 31, 2021.
The federal housing administration also has a ban on evictions and foreclosures of single-family homes, which has been extended to February 28, 2021. Exceptions are generally permitted for vacant and abandoned properties.