The former head of Ginnie Mae discusses the recent foreclosure freezes

He also predicts "further declines in the housing prices in this country."

From the CNBC interview:

Although the foreclosure freeze is stabilizing the housing market for the time being, it will trigger further housing price declines two to four quarters out, Joseph Murin, former president of the Government National Mortgage Association [Ginnie Mae] told CNBC on Monday.

"What it will cause is a more eroding of confidence in the American people," he said. "And when the American people aren't confident, they're not going to respond, which means the housing market is going to remain sluggish."

Foreclosure stalling is necessary for institutions to reassess whether they are processing correctly, Murin went on to say.

"There's no fraud involved in this," he said. "It's process inadequacy that's causing the problem. Behind the scenes, we're dealing with technology and experience that's probably a decade old. It's not kept up with the huge push [in mortgage debt]."