The CARES Act signed into law on March 27, 2020 includes a number of provisions affecting multifamily properties with federally-backed loans. A summary of these provisions is below.
Borrowers who were current on their mortgage payments as of Feb. 1, 2020 may request forbearance from their servicer.
Multifamily borrowers who receive forbearance cannot:
The statute does not match guidance previously issued by Fannie Mae and Freddie Mac.
This applies to federally-backed multifamily mortgage loan (Fannie, Freddie and HUD) properties, regardless of whether the borrower utilizes forbearance as outlined above.
Hap Burke, Jennifer Price, Sarah Rowan and Spenser Owens are attorneys in Thompson Coburn’s Real Estate practice group.
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