Fannie Mae and Freddie Mac extend renter protections for 8.6 million households
Freddie Mac and Fannie Mae, the government agencies that support millions of mortgages, have expanded their homeowner forbearance programs to prevent the exclusion of renters who live in these properties.
Landlords with multi-family mortgages supported by the agencies can start a new or revised forbearance program through March 31, 2021 if they are suffering from a hardship related to coronavirus. The program was originally due to expire on December 31st.
Read more: Rental Assistance: Find Assistance in Each State
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This helps tenants in these properties because landlords who participate in a leniency program cannot evict their tenants for non-payment of rent only, cannot impose late fees or penalties for non-payment, and must offer tenants the option to withdraw the rent over the course of the year Time to repay.
Photo by: STRF / STAR MAX / IPx 2020 9/2/20 The CDC bans evictions in the US until the end of the year due to the coronavirus pandemic.
"Due to the continued presence of COVID-19 in our communities and its disproportionate impact on tenants, the FHFA will extend the forbearance of multi-family offerings and tenant protection beyond the end of the year and into the first quarter of 2021," said Mark Calabria, director of the Federal Housing Finance Agency, which oversees the agencies, said in a statement.
Read more: How to negotiate with your landlord if you are facing an eviction
While the Forbearance Program offers approximately 8.6 million households in 170,000 homes more protection, it's only a temporary relief for landlords and tenants alike.
Program "helps to alleviate the money crisis for landlords"
To receive an Forbearance Extension, landlords must notify tenants in writing of the tenant protection granted to them, including flexible repayment options, no late penalties, and a minimum of 30 days notice for tenants.
"Expanding the landlord leniency program will help alleviate the money crisis for landlords who may have trouble managing their own bills and expenses," said Danielle Hale, chief economist at Realtor.com, a property listing website when income may does not come regularly because some tenants may not be able to pay rent on time or in full. "
Photo by: STRF / STAR MAX / IPx 2020 08/20/2020 A march on billionaire landlords can be seen in New York City. During these difficult economic times triggered by the coronavirus pandemic, the protesters want rent relief and / or a rental freeze.
According to an analytical tool from Stout Risius Ross, a financial advisory firm, between 7 and 14 million tenant households in the US are at risk of eviction, including properties that are unsupported by government agencies.
Read More: Coronavirus: Do The Following If You Can't Pay Rent
If President Trump signs the new stimulus packages bill passed by Congress on Monday night, renters across America who can prove financial difficulties due to the pandemic will be able to benefit from the federal eviction moratorium until January 31.
"As the COVID-19 pandemic continues to affect communities across the United States, Fannie Mae is proud to expand leniency options to protect apartment renters and help property owners financially affected by COVID-19," said Michele Evans, Executive Vice President and Head of Apartment Building in a statement. "The Forbearance Extension will continue to protect tenants by suspending all evictions for non-payment of rent and allowing flexible repayments that will help people stay in their homes."
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Dhara Singh is a reporter at Cashay and Yahoo Finance. Follow her on Twitter at @Dsinghx.
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