Mark Greene, chief executive officer at FICO, told attendees at a loan processing conference in Orlando that it would be 50 months before the foreclosure problem in this country “goes away, and that’s assuming there are no more foreclosures.”
Minneapolis-based FICO provides lender analytics and measures consumer credit risk. Among its products is the FICO Score that lenders use for residential loan applicants.
Lew Sichelman of the National Mortgage News also reported that Shelley Leonard, the executive in charge of consumer and home equity lending initiatives at Lender Processing Services, said it could be two years or more after that for the market to return to “normal.”
According to Leonard, there are simply so many distressed properties and it will take until mid to late 2013 for them to clear. And that’s just to get to 2009 levels, Leonard added. “To get back to prior to that, we’re talking much longer – 2015 or 2016.”
