Two-thirds of all noncurrent one- to four-family loans reported by banks and thrifts are government-backed loans that have been repurchased or are eligible for repurchase from Ginnie Mae pools, according to a Federal Deposit Insurance Corp. third-quarter report.Banks and thrifts held $5.9 billion of these Ginnie "buyback" loans that are noncurrent (90 days or more past due), which represents 67.5% of the $8.8 billion in noncurrent residential mortgage loans reported by all FDIC-insured institutions in the third quarter. "Because of the Ginnie Mae guarantees, these delinquent loans pose a lower risk of credit loss than other noncurrent loans," the FDIC report said. Banks began reporting all Ginnie buyback loans as a separate item in the June 30 Call Report due to new accounting rules. Thrifts first reported these buyback loans in the Sept. 30 Thrift Financial Report over the objections of lenders and issuers of Ginnie Mae mortgage-backed securities. Combined, banks and thrift held $8.0 billion in Ginnie buyback loans that are delinquent, noncurrent, or in nonaccrual status at the end of the third quarter.

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