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FICO Survey Says: “Sharp and Deep Turn to Pessimism”

FICO's quarterly survey of bank risk managers shows a "sharp and deep turn to pessimism," as CEO Mark Greene details in the accompanying video.

"Across the board [there's] unhappy news" in the survey, most notably in housing, Greene says.

According to the survey, 73% of bank risk managers expect mortgage foreclosure to rise in the next 5 years and 49% predict housing prices won't return to 2007 levels until 2020, at the earliest.

If true, America could be looking at "a decade of housing disaster," which will prompt more and more homeowners to 'walk away' from under-water mortgages, Greene says.

Unfortunately, the bad news is not limited to housing. Among the survey respondents — basically, the people who decide whether consumers can get loans — there are signs of increasing concern about the health of U.S. consumers, across all areas:

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