Fannie Bringing 'HomeSaver' Effort In-house

Fannie Mae is bringing the servicing of its 'HomeSaver Advance' program in-house — just weeks after it was revealed that re-defaults on HSA loans are nearing 70%. The government-sponsored enterprise has been using Dyck O'Neal Inc., an Arlington, Texas, collection agency, to service the advances, which are unsecured loans of up to $15,000 that cover past-due amounts on a mortgage. But in a notice to lenders last week, Fannie said that beginning June 9, it will take over the certification, billing and collection on these loans. Brian Faith, a spokesman for the GSE, said that it reviewed its "overall approach to implementing the HSA option and has reorganized some functions in-house versus outsourced." Despite the change, Dyck O'Neal will remain "a valued vendor partner" for other programs, Mr. Faith said. Dyck O'Neal did not return a call seeking comment. Fannie launched the advance program in February of last year to help homeowners catch up with mortgage payments and allow the GSE to avoid the expense of purchasing nonperforming loans out of securitized pools.