Foreclosures Could Remain High for 18 Months

November 02 2007 CNBC.com The rate of foreclosures in the United States will remain higher than normal for the next 18 months as the current home loan crisis plays itself out, a senior U.S. Treasury official said Friday. "A rising foreclosure rate during a housing downturn is not surprising, but largely because of lax underwriting in recent years, especially in the subprime market, a higher than usual number of homeowners will face delinquency during the next year and a half," Robert Steel, undersecretary for domestic finance, told a congressional panel in prepared remarks. A spike in home loan failures, particularly among subprime borrowers with shaky credit, has rattled financial markets around the world and prompted a global credit crunch.

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