Federal Lenders Offer Forebearance if Apartment Owners Don’t Evict Tenants

Finally! A smart program comes out of Washington.

The Federal National Mortgage Association (FNMA, or Fannie Mae) and Federal Home Loan Mortgage Corp (FHLMC, or Freddie Mac) buy most of the conforming residential mortgages in the U.S. They also buy mortgages for many multi-family units.

The two housing finance authorities were taken into conservatorship by the U.S. government in 2008, and now sit inside the Federal Housing Finance Agency. That department just announced that Fannie Mae and Freddie Mac will freeze mortgage payments for multifamily housing owners if they agree not to evict residents during the coronavirus panic.

This would leave the burden on the federal agency to make bond principal and interest payments without receiving some of the funds it would normally get from multifamily property owners, a burden it can easily handle.

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