Introduction to Fannie Mae Property Preservation
This Property Preservation Matrix and Reference Guide (Property Preservation Guide) is incorporated by reference into the Fannie Mae Servicing Guide and provides servicers with Fannie Mae’s expectations on how to preserve and protect properties. Unless otherwise stated, the Property Preservation Guide applies to vacant properties securing delinquent loans.
If the servicer receives a code violation or otherwise determines a property is in disrepair and the property is occupied on a delinquent loan, the servicer must remind the borrower of their obligation to the collateral and refer to Servicing Guide D2-2-10: Requirements for Performing Property Inspections.
If the servicer receives a code violation or otherwise determines a property is in disrepair and the property is in Fannie Mae’s REO inventory, the servicer must contact the REO real estate agent as determined in Asset Management Network (AMN). See Asset Management Network for further guidance.
This Property Preservation Guide also provides further information and expectations of services required by Fannie Mae and helps define items that may be unclear. If at any time there are questions regarding this Property Preservation Guide, contact Fannie Mae at email@example.com.
Amendments to the Guide
Fannie Mae reserves the right to alter or waive any of the requirements in this Property Preservation Guide, to impose additional requirements, and to rescind or amend any and all material set forth herein.
Tips for Using the Guide
The following tips will help make this Property Preservation Guide a valuable resource and reference tool:
- Ensure you are using the most current version of the Property Preservation Guide available.
- Read through the Property Preservation Guide from start to finish familiarizing yourself with the information it contains.
- Strictly adhere to all Fannie Mae processes and procedures to ensure smooth transactions.
- Keep the Property Preservation Guide readily available as a reference tool.
Throughout this Property Preservation Guide, it is not possible to provide guidance or expectations on every possible situation a servicer may encounter. Fannie Mae expects the servicer to notify Fannie Mae immediately of any situation if unsure of how to handle.
At Fannie Mae, the Property Preservation team's mission is to ensure the quality of our property maintenance services throughout the default process to eliminate community blight and protect housing values.
Our goal is for the servicer to provide services to maintain each property to a level of Fannie Mae quality and to adhere to local codes and requirements. In addition, we strive to:
- Be a good neighbor.
- Support neighborhood stabilization.
- Minimize Fannie Mae's exposure to potential property damage and liability and/or code violations.
- Partner with servicers to ensure they, as well as their Local / Regional / National Property Preservation Vendor(s) provide quality services.
Fannie Mae's Property Preservation practices are part of its overall neighborhood stabilization efforts.
The servicer is required to maintain the interior and the exterior of the property year round. Fannie Mae provides the servicer with allowable thresholds in order to perform routine maintenance, preservation, and repairs. All expense reimbursement limits (allowables) can be found in Servicing Guide F-1-05: Expense Reimbursement. Within this Property Preservation Guide, all required services and expectations will be provided as they correspond to the associated allowable.
In addition to complying with the core performance expectations, critical functions, and metrics presented in this Property Preservation Guide, Fannie Mae expects the following from all servicers:
- Provide high quality goods, services, procedures and processes.
- Perform services in a fiscally responsible manner.
- Deliver timely and accurate goods and services.
- Provide the highest possible standards of business ethics and professional courtesy.
- Provide professional customer service.
- Strive for continuous improvement.
- Comply with all applicable laws and codes.
Fannie Mae requires any specialty services (i.e., extermination, roof replacement, demolition, etc.) to have bids obtained and services performed by qualified/licensed/certified contractors as required by local/state requirements.
Fannie Mae reserves the right to pursue remedies per the Fannie Mae Servicing Guide when the servicer has not met the required timeframes or the work is deficient. Any property may be subject to audit. The servicer and/or the servicer’s vendor must provide any documents and/or additional information as requested by Fannie Mae within seven (7) calendar days of such request.
For more information, see Servicing Guide A4-1-01: Staffing Training, Procedures, and Quality Control Requirements.