August 14, 2020
July Securitization Forbearance Report
Freddie Mac implemented a forbearance relief plan in March that allows qualifying multifamily borrowers to defer up to three months of mortgage payments. In June, we announced new supplemental relief options for qualifed affected borrowers. Today, we are releasing our fourth forbearance report which details data received from master servicers that demonstrates the impact of these plans on our securitizations.
We found that master servicers reported 1,252 forborne securitized loans, or 5.2% of our total securitized loan population. This equates to about $7.8 billion of outstanding unpaid principal balance (UPB) and represents 2.6% of our total securitized UPB. By comparison, in our June 30 Forbearance Report, we noted a total of 1,189 forborne loans for $7.9 billion UPB. Other key findings of the July report include:
- Just over one-half of securitized pools have at least one loan forborne.
- Of the total $7.8 billion forborne loans, 9.6% are student housing and 11.2% are seniors housing facilities.
- There are 84 loans, or roughly 12% by UPB, that have a request for additional relief either approved or in process through the supplemental forbearance relief program.
- A higher percentage of the forborne loans are Small Balance Loans, at 76% by loan count, but 32% by UPB.
- The vast majority of forborne loans would need to sustain an effective gross income drop in excess of -10% in order to fall below a 1.00x debt service coverage ratio (DSCR).
Check out these links for additional information about our forbearance relief program and its impact to our multifamily securitizations.
- June Forbearance Report
- May Forbearance Report
- April Forbearance Report
- COVID-19 Forbearance Resources for Investors
- Forbearance Frequently Asked Questions
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