Fannie Mae and Freddie Mac are approving more forbearance, modification and extension requests for multifamily and small apartment properties compared to the private sector, according to a new report from Trepp.

More than half of the properties seeking forbearance relief were from small balance loan borrowers, according to Trepp. Small balance loans are typically used to finance apartments with 100 units or less and are commonly leveraged as federal financing support for affordable or rent-stabilized housing, Trepp wrote. Properties financed by small balance loans usually target lower/moderate-income or hourly paid tenants, who have been recently hit hard by business layoffs and closures.

With their tenants' income unstable, small balance loan multifamily operators have proactively asked for assistance, Trepp reported. Freddie Mac K-series (43.2%) and Fannie Mae DUS (29.1%) programs have issued the majority of forebearances granted to small balance loan multifamily borrowers.

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Victoria Hudgins

I am a reporter for Legaltech News where I cover data privacy, cybersecurity and technology's impact on the business and practice of law.