Fannie Mae Increases Property Preservation Expense Reimbursement Limits

On June 11, 2025, Fannie Mae issued Servicing Guide Announcement SVC-2025-03 establishing increased property preservation expense reimbursement limits for mortgage servicers managing delinquent and foreclosed properties. The updated Property Preservation Matrix now allows servicers to justify higher costs for securing, routine maintenance, winterization, lawn care, and property condition inspections without requiring prior investor approval for expenses previously capped at lower thresholds.

Nevada property preservation vendors and mortgage servicers throughout Las Vegas, Henderson, and Reno benefit from updated expense limits that reflect labor cost increases, materials inflation, and Nevada-specific property preservation requirements under Clark County codes.

Key Changes in SVC-2025-03 Expense Limits

The revised Property Preservation Matrix increases maximum allowable expenses across critical categories:

• Initial Securing Services: Increased from $250 to $325 for lockouts, lock changes, window boarding, and entry point securing
• Winterization Services: Increased from $300 to $400 for freeze protection, heat maintenance, drainage verification, and HVAC shutdown procedures
• Monthly Lawn Care: Increased from $75 to $100 per occurrence for grass cutting, debris removal, and basic landscape maintenance
• Property Condition Inspections: Increased from $60 to $85 per inspection for monthly delinquency monitoring and occupancy verification
• Debris Removal: Increased from $200 to $275 for interior and exterior debris cleanup
• Pool Maintenance: Increased from $150 to $200 per month for pool draining, chemical treatment, and cover installation

Impact on Nevada Property Preservation Vendors

Nevada vendors serving mortgage servicers in Summerlin, Green Valley, and Pahrump can now align pricing with actual costs while maintaining Fannie Mae compliance. Updated limits account for Nevada's higher labor rates in Clark County, materials cost increases averaging 15-25 percent annually since 2020, and specialized requirements for desert climate property preservation including pool maintenance and dust control.

Servicers must still document and justify all expenses through itemized invoices, vendor certifications, and photographic evidence of completed work. The increased limits do not eliminate documentation requirements but provide servicers greater flexibility to approve necessary preservation work without investor pre-authorization delays.

Compliance Requirements for Nevada Mortgage Servicers

Nevada servicers must implement updated expense limits immediately for all property preservation work orders initiated after June 11, 2025. Compliance procedures include:

• Vendor Contract Updates: Revise master service agreements with property preservation contractors reflecting new maximum reimbursable amounts
• Automated Approval Workflows: Update servicing platforms to automatically approve expenses within revised limits without manual review
• Documentation Standards: Maintain timestamped photos, itemized invoices, and work completion certificates for all preservation activities
• Monthly Reporting: Track preservation expenses by property and category to demonstrate compliance with Fannie Mae guidelines
• Exception Management: Establish procedures for expenses exceeding matrix limits requiring investor pre-approval

Field Inspection Documentation Support

For Nevada mortgage servicers requiring comprehensive delinquency property inspections aligned with FNMA SVC-2025-03 documentation standards, Lake Mead Mobile Notary provides professional field inspection services throughout Clark County and Washoe County. Property condition assessments supporting preservation expense justification available across Downtown Las Vegas, Sun City Anthem, and Sunrise Hospital area with 24-48 hour turnaround.

Book occupancy verification services at https://lakemeadmobilenotary.com/book or call/text (702) 748-7444 for FNMA-compliant property condition documentation supporting SVC-2025-03 expense reimbursement justification.

This content is for informational purposes only and does not constitute legal or financial advice. Mortgage servicers should consult Fannie Mae Servicing Guide documentation and internal compliance counsel regarding specific SVC-2025-03 implementation requirements.