But here, too, care is needed as well as speed, to ensure that the calibration of the framework for non-judicial debt settlement does not incentivise behaviour that imposes unnecessary costs to the taxpayer. Making swifter progress on these fronts, while avoiding unintended consequences which add to the costs of the financial crisis, is the key challenge.
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.