Ginnie Mae has repurchased $4.5 billion of delinquent loans out of securitized pools this year in an effort to reduce losses on servicing portfolios it inherited from LendAmerica and other defaulted issuers.

Instead of paying Ginnie Mae MBS investors 5% to 6% interest on delinquent loans, the secondary market agency dipped into its U.S Treasury investments and purchased the notes for itself.

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