At the start of this month, many Americans found themselves wondering how they will pay their rent. At the same time, thousands of multifamily operators across the country found themselves asking whether they will meet their obligations to investors and how they will keep residents safe.
All Americans have seen their lives affected by the coronavirus in one way or another. Many have fallen ill, millions have lost their jobs and businesses have struggled. Much has changed with this pandemic, but Freddie Mac’s mission has not.
We are here to provide leadership and stability in times of stress, liquidity where and when needed, and affordability through all economic cycles. And that’s exactly what we plan to do for as long as this pandemic endures — because our mission is more important now than ever.
In the past few weeks, we’ve taken a series of quick actions to stabilize the multifamily market:
- We initiated a nationwide relief plan for our multifamily borrowers and their residents. Under this program, multifamily operators with a Freddie Mac Multifamily performing loan can defer their loan payments for 90 days. In turn, we’re requiring no evictions of any tenant based solely on non-payment of rent during the forbearance period.
- We adapted our processes for social distancing and closures to keep business moving. Our modified due diligence procedures and adjusted pricing enabled us to responsibly maintain our presence in the multifamily market. We remain open for business.
- We continued to tap the capital markets, issuing six securitizations since March. Despite unprecedented volatility across markets, we are still issuing new securitizations — all well subscribed — across all major products (both K-fixed and floating, as well as SBL), while maintaining an active calendar going into April.
As multifamily finance has felt the growing effects of the pandemic, it’s been inspiring to see professionals from across the industry rise to the occasion and work to meet the needs of property owners and their renters.
Going forward, we at Freddie Mac will continue to move quickly and responsibly to adapt to the changing environment and deliver on our mission. You can stay informed of the changes by checking our COVID-19 Business Updates page.
Although the environment we face is unprecedented, we’re confident that by maintaining a steady course and working in close partnership with our Optigo® network, we will navigate the challenges successfully.
During this difficult time, we wish you, your teams and your family all the best. Stay healthy and safe.
Posted on freddiemac.com on 4/13/2020.