Statement of Joseph J. Murin
Nominee to serve as President of the Government National Mortgage Association

Hearing before the Committee on Banking, Housing and Urban Development
United States Senate - June 3, 2008

Chairman Dodd, Ranking Member Shelby, and distinguished members of the committee, I sincerely appreciate the opportunity to appear before you today. Thank you, Chairman Dodd, for you kind words of introduction, and thank you to all of the members of the committee and their staffs who have met with me over the last few months. Those meetings have provided valuable insight into the position for which I have been nominated.

It is a privilege to appear before you today as President Bush's nominee for Ginnie Mae president. I bought my first home with an FHA-insured loan. I have spent my entire career in the housing industry, from lending to back-office operations and even construction. For a man who has done just about every job in the housing and mortgage finance industry, it is an honor to seek your confirmation as president of an organization I consider critical to sustaining and promoting homeownership opportunities in America.

They say behind every successful man is a woman. My wife, Angela, is with me today. Without her love and support, I simply would not be here today, nor would I have my wonderful family or enjoyed such a successful career. It has been a 36-year partnership between us and I would be remiss if I did not thank her for her steadfast love and support.

We bought that first home in 1977. Since then, we have designed and built seven homes. We understand the importance of owning a home - how it ties you to your community, how children benefit from the stability it provides, and the manner in which it helps to build wealth. That is why I believe in homeownership and I am committed to helping others achieve the dream of owning a home.

But homeownership is not just about families and communities. For the last few years, it has truly served as the engine of our economy. Buying, building, renovating-all of these have a tremendous impact on the economies of our cities and towns. And it's not just local economies that are helped or hurt by whether people can afford to buy a home. The effects ripple throughout national and international credit markets as well.

The mortgage-backed security is the reason local housing markets impact international credit markets. In 1971, Ginnie Mae issued the first ever mortgage-backed security in the United States. And in doing so, they revolutionized the way housing is financed. Because an investor in Asia can buy into a pool of U.S. mortgages, a family in Texas can own a home.

It has been 30 years since Ginnie Mae issued the first MBS. The industry has evolved enormously since then. In the 1980s, I ran a mortgage bank. Government loans were our bread and butter. My loan officers fed their families on FHA and VA loans. But as capital became more available through the growth of the MBS, interest in government products declined.

Today, that is no longer true. The housing market is much different. The MBS which spurred investment in real estate is less attractive to investors. Home values are declining and foreclosure rates are increasing. It has become more difficult for low- and moderate-income borrowers to obtain a mortgage.

The industry has come full circle on its view of government-insured loans. There is recognition that FHA and Ginnie Mae are important elements of a diverse housing finance system - necessary elements when credit tightens.

We are at a turning point in this industry and Ginnie Mae is in a unique position to help the industry navigate its way through the challenges. Investors are now looking for safer MBS products. Ginnie Mae offers that.

Its mission is to "expand affordable housing by linking the global capital markets to the nation's housing markets." That mission is about making the connection between local communities and international economies, never forgetting that behind the current discussion of credit crunches and fluctuating markets is a family that wants to buy a home or keep the one it already has.

If confirmed, I will be committed to that mission, to drawing the link between homeownership, strong communities, and a thriving economy.

Ginnie Mae may be in the best position to meet its mission since its inception. Even with the challenges that face us, we can continue to help American families become homeowners. Like the thousands who labor daily at HUD, I respect and care deeply about the program and I am committed to making a difference in lives throughout America. It would be an honor to contribute to HUD's efforts.

Mr. Chairman and Senators, thank you for your courtesy in listening to my remarks. I'd be happy to answer any questions you may have.