The biggest Ginnie Mae MBS issuers cleaned house in the fourth quarter by buying a boatload of delinquent loans out of Ginnie pools, but its new president says that will not be repeated in upcoming quarters.

The Ginnie issuers realized that it no longer made sense to advance payments to investors on delinquent loans with 6% and 6.5% mortgage rates when their internal cost of funds is much, much lower.

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