Removing Barriers Blog

COVID-19: FHFA Takes Actions
Posted March 23, 2020 by CUNA Advocacy

In a series of announcements on Monday, the Federal Housing Finance Agency (FHFA) detailed three initiatives intended to assist individuals affected by the COVID-19 pandemic and facilitate liquidity in the mortgage market:

  1. Under FHFA’s direction, Fannie Mae and Freddie Mac (the 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. The eviction suspensions are in place for the entire duration of time that a property owner remains in forbearance. The forbearance is available to all multifamily properties with an Enterprise-backed performing multifamily mortgage negatively affected by the coronavirus national emergency.
  2. In addition, FHFA has authorized the Enterprises to enter into additional dollar roll transactions (dollar roll transactions provide mortgage-backed securities investors with short-term financing of their positions, providing liquidity to these investors). Eligible collateral is limited to Agency mortgage-backed securities and the transactions must be undertaken via an auction or similar mechanism to ensure that they occur at a fair market price.
  3. In a separate action, FHFA also directed the Enterprises to provide alternative flexibilities to satisfy appraisal requirements and employment verification requirements through May 17, 2020.​