Freddie Mac announces changes to forbearance program to align with CARES Act

Federal Issues Covid-19 Freddie Mac Mortgages Forbearance

On April 15, Freddie Mac announced revisions to its multifamily Covid-19 forbearance program to align with CARES Act provisions related to multifamily borrowers and tenants. The program now (i) no longer requires tenants to demonstrate that nonpayment is due to a Covid-19 related hardship in order to avoid eviction during the forbearance period, (ii) explicitly provides that borrowers may not charge late fees, penalties, or other charges related to nonpayment of rent during the forbearance period, and (iii) extends the last day to enter forbearance under the program to the end of the federally declared emergency period or December 31, 2020, whichever comes first.