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May 28, 2020

May Multifamily Securitization Forbearance Report

Freddie Mac’s forbearance relief plan in response to COVID-19 allows qualifying multifamily loans to defer up to three months of mortgage payments.

Today we released our second forbearance report that provides an overview of this program as of the May 26 security payment date. We plan to release these reports monthly and you’ll find them here.

Here are some key facts:

  • Master servicers on Freddie Mac securitized loans reported 1,011 forborne loans totaling $6.4 billion. This is 2.1% of the outstanding securitized unpaid principal balance (UPB) and 4.3% of the total number of Freddie Mac securitized loans outstanding.
  • Small Balance Loans (SBL) made up a higher percentage of forborne loans by loan count, comprising 75% of the total number of forborne loans outstanding, but 30% of the total forborne UPB. With fewer units, each one experiencing stress has a large impact on small property operators.
  • Of the total $6.4 billion forborne loans, 8.8% are student housing and 11.4% are senior housing facilities.
  • About one-half of securitized pools have at least one loan forborne.
  • New York, Texas, Maryland, Florida and California are the top five states with forbearance requests.
  • Prior to the COVID-19 crisis, the credit quality of these forborne loans was relatively strong. Of the loans requesting forbearance, 78% have a pre-crisis debt service coverage ratio (DSCR) above 1.25x. And roughly 98% of forbearance loans have a pre-crisis mark-to-market Loan-to-Value (LTV) ratio of less than or equal to 80%.

For more details about our COVID-19 business updates, check out our COVID-19 webpage. Reporting guidance and remitting examples can be found on the Investor Reporting webpage under the References tab.

Past months’ forbearance reports can be found here in our COVID-19 Investor Resources section.

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