“The number of foreclosures initiated on residential properties has soared from about 1 million in 2006, the year that house prices peaked, to 2.8 million last year.

Over the first half of this year, we have seen a further 1.2 million foreclosure filings, and an additional 2.4 million homes were somewhere in the foreclosure pipeline at the end of June.

All told, we expect about 2.25 million foreclosure filings this year and again next year, and about 2 million more in 2012.

While our outlook is for filings to decline in coming years, they will remain extremely high by historical standards.

Currently, almost 5 million mortgage loans are 90 days or more past due or in foreclosure.”

Testimony

Governor Elizabeth A. Duke

Foreclosure documentation issues

Before the Financial Services Subcommittee on Housing and Community Opportunity, U.S. House of Representatives, Washington, D.C.

November 18, 2010

http://www.federalreserve.gov/newsevents/testimony/duke20101118a.htm