As a result of deteriorating credit, slower home price appreciation and subprime spill-over, Ginnie Mae securities are falling out of favor with Street analysts.

On the credit side, Federal Housing Administration (FHA) delinquencies have been rising. Specifically, 90-plus day delinquencies on FHA loans rose to 3.6% by the end of Q406 from 1.3% in Q198. According to Mortgage Bankers Association statistics, this is slightly above subprime 90-plus delinquencies of 3.3% as of Q406.

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