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Federal Reserve Speech: Problems in the Mortgage Servicing Industry

Governor Sarah Bloom Raskin At the National Consumer Law Center’s Consumer Rights Litigation Conference, Boston, Massachusetts, November 12, 2010: Problems in the Mortgage Servicing Industry

  • “The number of foreclosures initiated on residential properties has soared from about one million in 2006, the year that house prices peaked, to 2.8 million last year. There were 1.2 million foreclosure filings in just the first half of this year. In addition, right now nearly five million loans are somewhere in the foreclosure process, or are 90 days or more past due and hence at serious risk for a foreclosure filing. Our projections remain very grim for the foreseeable future: All told, we expect about two and one-quarter million foreclosure filings this year and again next year, and about two million more in 2012. While these numbers are down from their peak in 2009, they remain extremely high by historical standards and represent a trauma in the lives of millions of people affected.”
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