FHFA announces new relief measures

Mar 24, 2020

The Federal Housing Finance Agency on Monday announced several initiatives to provide relief to lenders, borrowers and renters amid the coronavirus outbreak. The FHFA:

  • Directed Fannie Mae and Freddie Mac to provide alternative flexibilities to satisfy appraisal and employment-verification requirements through May 17.
  • Announced that the government-sponsored enterprises will offer multifamily property owners mortgage forbearance with the condition that they suspend all evictions for renters unable to pay rent due to the impact of coronavirus.
  • Authorized the GSEs to enter into additional dollar-roll transactions, which provide investors in mortgage-backed securities with short-term financing to support liquidity.

The FHFA previously directed the GSEs to suspend foreclosures and evictions for at least 60 days and said they would allow borrowers affected by the coronavirus to suspend a mortgage payment for up to 12 months.