With issuance in the Ginnie Mae sector declining noticeably, analysts are looking at factors aside from housing market fundamentals that may be taking Ginnie borrowers away from the sector.

"Evidence suggests that the private sector (as well as Fannie Mae and Freddie Mac) are taking market share away from Ginnie Mae," wrote Peter DiMartino, managing director at RBS Greenwich Capital. Ginnie Mae borrowers seem to be suitable candidates for the expanded underwriting standards currently offered by competing lenders.

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