Q&A: Joe Murin, Former Ginnie Mae President

This week, TheStreet and RealMoney will be exploring the aftermath of Lehman Brothers' bankruptcy filing and the ensuing market chaos it brought to a head almost a year ago.

WASHINGTON (TheStreet) -- Joe Murin stepped down as the president of Ginnie Mae last month, after overseeing the government's mortgage guarantor through a tumultuous year.

Ginnie was forced to expand its presence in the mortgage market, filling gaps created by the hobbled finance agencies Fannie Mae (FNM Quote) and Freddie Mac (FRE Quote).

The company's role is to be a guarantor of last resort in the mortgage-securities market. So, if a borrower stops paying his or her mortgage and the Federal Housing Administration or Department of Veterans Affairs loans can't cover the bill, Ginnie will step in.

At one point, that safety was less attractive than Fannie and Freddie MBS, but the risk-rewards scenario has shifted out of necessity. Ginnie set new records for MBS issuance over the past five months, with its exposure expected to hit the $1 trillion mark by the end of next year -- more than double the scale of 2007. And while Fannie and Freddie are now in conservatorship, with the government having injected nearly $100 billion into the firms to keep them alive, Ginnie is still profitable.

Still, all that backing has come under fire as the government has become a more active participant in the mortgage space. Critics have assailed the FHA for continuing the subprime debacle by covering loans with weak underwriting standards that are underpinned by taxpayer dollars.

Murin stepped down from his role at Ginnie on Aug. 13 to join the Washington-based consulting firm Collingwood Group, which advises the financial industry. He also joined the board of technology and outsourcing company iGate Corp. (IGTE Quote), which is seeking new business in the financial sector.