Former GNMA Chief: Cut the Agency Loose From HUD

The Government National Mortgage Association should be given its independence from the Department of Housing and Urban Development, its former president said. Joseph Murin, who ran Ginnie Mae for two years and is now a private sector consultant, called on Congress to cut the agency loose from HUD, during a speech he made at the recent Midwinter Housing Conference. Thanks to the collapse of the nonprime mortgage market, GNMA's issuance volume is booming. Along with Fannie Mae and Freddie Mac, GNMA-backed product dominates today's mortgage market. Mr. Murin left GNMA this past summer. The agency guarantees almost $1 trillion in product compared to $350 billion two years ago. Mr. Murin believes that because GNMA is now so large and plays such an integral part in the secondary market, "it requires a structure that provides for its independence and the ability to respond to the always changing secondary market." (For the full story see the weekly edition of National Mortgage News.)