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October 20, 2020

September 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 qualified affected borrowers. Today, we are releasing our sixth forbearance report, which details data received from master servicers that demonstrates the impact of these plans on our securitizations.

Read the September report.

We found that master servicers reported 1,225 forborne securitized loans, or 5% of our total securitized loan population. This equates to about $7.5 billion of outstanding unpaid principal balance (UPB) and represents 2.4% of our total securitized UPB. Other key findings include:

  • In September, there was a net increase of two loans in forbearance, relatively flat compared with August’s Forbearance Report.
  • More than three-quarters of the loans, 78% by loan count and 73% by UPB, whose forbearance period ended in September or earlier, are currently making payments or have made all their forborne payments.
  • A higher percentage of the forborne loans are Small Balance Loans (SBL), at 76% by loan count, but 34% by UPB.
  • Of the total $7.5 billion of forborne loans, 10.3% by UPB are student housing and 11.7% are seniors housing facilities.  
  • The vast majority of forborne loans would need to sustain an effective gross income (EGI) drop in excess of -10% in order to fall below a 1.00x DSCR.

Check out these links for additional information about our forbearance relief program and its impact to our Multifamily securitizations.

 

 

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