Announcement SVC-2025-03 – Servicing Guide Update
Updated GSE servicing requirements for preforeclosure property preservation expense reimbursement limits
Advisory Assessment
Impact. Fannie Mae has revised reimbursement limits for preforeclosure property preservation expenses, requiring servicers to update their expense processing workflows and apply new caps to qualifying services completed on or after June 11, 2025. This affects how your institution calculates and submits reimbursement requests for property maintenance activities like securing vacant properties, lawn care, and winterization.
Risk. Operations teams handling property preservation invoicing face the highest exposure if they continue applying outdated reimbursement limits after the effective date. Examination risk centers on whether your expense processing accurately reflects current GSE requirements, particularly during summer peak season when property preservation activity typically increases.
Recommended Action. Direct your servicing operations team to review current property preservation expense workflows against the updated Servicing Guide provisions and adjust processing systems to incorporate the new limits. Coordinate with vendor management to ensure third-party preservation contractors understand any changes to reimbursable expense thresholds.
Watch. Monitor for additional GSE servicing guide updates through summer 2025, as property preservation requirements often see seasonal adjustments. Track whether similar updates emerge from Freddie Mac to ensure consistent handling across GSE portfolios.
Classification
- Regulatory Program
- GSE Servicing
- Doc Type
- Guidance
- Effective Date
- 2025-06-11
- Days to Action
- -400
- Comment Deadline
- —
- Published
- 2025-06-11
Urgency Basis
Effective date of June 11, 2025 is over 180 days past the reference date of May 19, 2026
Operational Context
Impact by Category
Key Requirements
Scoring Rationale
This is a routine GSE servicing guide update with limited scope affecting only property preservation expense reimbursement limits. The changes are operational in nature, requiring updates to expense processing workflows but not creating new substantive compliance obligations. Scores are kept low given the narrow technical scope and lack of consumer-facing or capital impact.