§9057 Forbearance of residential mortgage loan payments for multifamily properties with Federally backed loans

Summary

Multifamily borrowers with a Federally backed mortgage who have a money problem because of the COVID–19 emergency can ask their loan servicer to pause mortgage payments during the covered period. To be eligible the borrower must have been current on payments on February 1, 2020. The borrower can make the request by phone or in writing and must say they have a COVID–19–related hardship. The servicer must record the hardship, give a payment pause for up to 30 days, and, if the borrower asks during the covered period and at least 15 days before the current pause ends, extend the pause two more times for 30 days each. The borrower can stop the pause at any time. While a borrower has a payment pause, they cannot evict a tenant only for not paying rent or charge late fees to that tenant. The borrower also cannot make a tenant leave earlier than 30 days after giving a vacate notice, and cannot give a vacate notice until after the pause ends. Definitions: applicable property = the residential multifamily property tied to the loan; Federally backed multifamily mortgage loan = a non‑temporary loan secured by a property for 5 or more families that is made, insured, guaranteed, assisted, or bought by federal agencies or by Fannie Mae or Freddie Mac; multifamily borrower = borrower of a mortgage on a property with 5 or more units; COVID–19 emergency = national emergency declared March 13, 2020; covered period = March 27, 2020 until the national emergency ends or December 31, 2020, whichever comes first.