FHFA Announces 3 New Tenant Protection Policy Changes

The Federal Housing Finance Agency (FHFA) today announced three policy changes effective for all new multifamily mortgage loan applications signed on or after Feb. 28, 2025.

At that time, Fannie Mae and Freddie Mac’s loan documents will require borrowers to provide tenants:

1. A 30-day notice of rent increases;
2. A five-day grace period for late rent; and
3. A 30-day notice of the lease term expiration.

These provisions will not apply to existing mortgages or loan documents signed before the effective date in February 2025.

FHFA, along with Fannie Mae and Freddie Mac, are expected to release more details about the implementation of these policies in August. They also announced that they “will continue to evaluate options for codifying additional tenant protections that advance sustainable housing in a manner that reflects the needs of both tenants and housing providers.”