It is unclear how long the coronavirus crisis will continue in the Chattanooga area, so the government has stepped in to help renters and multifamily property owners.
The Federal Housing Finance Agency recently announced that the government sponsored enterprises Fannie Mae and Freddie Mac would offer multifamily property owners a mortgage forbearance on the condition that they suspend evictions for renters unable to pay rent due to the impact of coronavirus.
The FHFA also announced Fannie Mae and Freddie Mac will suspend foreclosures and evictions for enterprise-backed single-family mortgages for at least 60 days. The eviction suspensions are in place for the entire duration of time that a property owner remains in forbearance.
As the economic fallout from coronavirus is expected to strain renters and landlords alike in the coming weeks and possibly months, FHFA said it would monitor the impact of the coronavirus national emergency on the housing finance market and update their policies as necessary.
The recent moves are aimed at protecting multifamily owners and tenants amid increasing calls for national action on eviction and rent payments as joblessness rises and more Americans are expected to fall behind in payments.
Many state and local governments have already instituted temporary eviction moratoriums. The Department of Housing and Urban Development has urged public housing agencies to temporarily halt evictions as well.
Fannie Mae has purchased or insured mortgages tied to 3.4 million multifamily apartment units since 2015, according to a recent report. The Federal Housing Administration said it would apply the same standards to its roughly 8.1 million insured home mortgages.
We want you to stay safe and be prepared during the months ahead as the nation addresses COVID-19 and its related economic effects. For more information on how changes to government sponsored mortgage programs might affect you, visit the Home Builders Association of Greater Chattanooga at HBAGC.net.