The Mortgage Bankers Association called on housing finance firms to step up efforts to connect tenants with government rental assistance as new rules for restarting evictions were laid out Wednesday.
With the two large government-sponsored enterprises adding a notification period for tenants in properties securing their loans, and the Consumer Financial Protection Bureau releasing an online tool to assist tenants and landlords in securing aid from the Emergency Rental Assistance programs, the MBA urged members to get more involved too.
“With the CDC nationwide eviction moratorium set to expire on July 31st, we are working closely with our multifamily loan servicing members to communicate to their borrowers that billions of dollars [are] available to help tenants and landlords in need,” MBA President and CEO Bob Broeksmit said in an emailed statement on Wednesday. “We will continue to partner with policymakers and industry stakeholders to build awareness and push for states to distribute rental assistance more efficiently.”
The Federal Housing Finance Agency’s new rules call for non-paying tenants to receive a 30-day notice before they can be required to leave the property. Fannie Mae and Freddie Mac plan to spread the word about the requirement to landlords and tenants.
“Many families across the country, particularly renters, are still struggling financially due to the COVID-19 pandemic. It is important to clearly communicate available protections,” said FHFA Acting Director Sandra L. Thompson in a press release.
Some members of congress like Reps. Jimmy Gomez, D-Calif., Ayana Pressley, D-Mass., and Cori Bush, D-Mo., have called for a further extension of the national eviction ban to allow for the distribution of rental assistance being distributed through the states. However, the federal moratorium also has been beset by legal challenges, including one filed on Tuesday by the National Apartment Association, and at deadline it looked unlikely to be extended.
