Confusion over the ownership of foreclosed properties isn’t “about fraud, but process inadequacy,” Joseph Murin, a former president of Ginnie Mae, told CNBC Thursday.
“In 2000, the total debt for mortgages in this country was $6 trillion. At the end of ’09, it was $14.4,” said Murin, who is now chairman of the investment company the Collingwood Group.
“So you have far more units in the marketplace than you did a decade ago, and you probably haven’t had any advancement in the ability to service those units than you did in 2000. When you go from 3.65 average delinquency to 12, it’s math. And if you don’t have an infrastructure to support it, this is what's going to happen.”
With millions of Americans in foreclosure and millions more on the verge of it, Murin said major housing reform is needed.