FHFA Rescinds Multifamily Lease Policies
March 26, 2025
Newly appointed Federal Housing Finance Agency (FHFA) Director William Pulte published orders on social media platform X on March 24, rescinding a 2024 FHFA directive entitled “Aligned Policies on Multifamily Rental Payment Flexibility and Lease Notices.”
Why it matters: The order eliminates a Biden-era policy requiring that GSE multifamily loan documents mandate various notices and grace periods for tenants.
Background: In July 2024, the FHFA announced mandatory tenant protections, via loan agreements, for multifamily properties financed by Fannie Mae and Freddie Mac (the GSEs). The effort was part of a broader push to examine tenant protection policies at the GSEs, including possible rent control.
- The July 2024 press release noted that this is “the first time that tenant protections will be a standard component of Enterprise multifamily financing.”
- Effective February 28, 2025, covered housing providers would have been required to provide tenants with the following:
- 30-day written notice of a rent increase;
- 30-day written notice of a lease expiration; and
- 5-day grace period for rent payments.
Yesterday, Pulte also ordered the rescission of an advisory bulletin requiring the GSEs to develop a “climate-related risk management framework into its existing enterprise risk management program.”
As covered in CREFC’s most recent Policy and Capital Markets Briefing, last week Pulte revamped the boards of both Fannie Mae and Freddie Mac and is now chair of each board. Freddie Mac CEO Diana Reid was let go and FHFA Chief Operating Officer Gina Cross and Human Resources Director Monica Matthews were placed on leave.
Please contact Sairah Burki (sburki@crefc.org) with any questions.