HUD resumes in-person inspections, Fed reports tightened lending standards, Black Knight sees forbearance fall and "echo," multifamily owners obligated to inform tenants about forbearance extensions, and the continuing rent and eviction crisis.
In Today's News
HUD Resumes Physical Inspections Amid COVID-19
The U.S. Department of Housing and Urban Development announced today that it would resume physical inspection of HUD-assisted multifamily and public housing properties. The agency said it would use strict safety protocols and begin in areas where the pandemic risk is deemed the lowest.
Why it matters: Private investors have a big stake in many HUD-backed properties, and in helping those properties meet federal standards for health, safety, and accessibility. And it can be seen as a kind of good sign, perhaps, that at least one activity is returning to something like normal.
Federal Reserve Survey Finds Tightening Lending Standards
The Federal Reserve this week reported that its July survey of senior loan officers nationwide found lending standards tightening for both commercial and residential borrowers.
Why it matters: The survey found those standards were being tightened across the board, accompanied by weaker interest for commercial and industrial loans. Skepticism about the economy also was cited. The good times are not rolling yet despite signs of some recovery from the pandemic plummet.
Black Knight (NYSE: BKI) Says Active Forbearances Fall But Sees Autumn "Echo"
The data giant says active forbearance plans fell by 101,000 in a week but that three-month extensions were granted for an estimated 2.2 million of them, setting the market up for an autumn "echo wave" of forbearance expirations.
Why it matters: A lot can change in three months, and there's been some indication that many mortgages in forbearance are held by homeowners who could otherwise make the payments. Let's hope that's enough to offset the sobering reality of millions of foreclosures that could follow if that's not the case.
Multifamily Property Owners Must Inform Tenants of Forbearance Extensions in Writing
The Federal Housing Finance Agency said this week that landlords must inform tenants in writing about protections against evictions when the owners of multifamily properties receive mortgage forbearance extensions for loans backed by Fannie Mae or Freddie Mac.
Why it matters: Those protections include no evictions during the pandemic, no late fees for nonpayment of rent, and the ability to repay over time the back rent owed. Landlords need to again adapt this new reality as millions of forbearance agreements are renewed.
Today on Millionacres
COVID-19 Could Spur a Massive Eviction Crisis
More than 12 million renters were protected by a federal moratorium on evictions that ended on July 25. Unless Congress acts soon, that's more than 12 million renters who could be forced out of their homes beginning in about a month.
Why it matters: Mom and pop landlords and big corporate operations alike need to get ready for this eventuality. Millionacres' Maurie Backman argues, though, that there's only so much they can do and that lawmakers need to step up again, and soon.