Bankers expect the number of mortgage foreclosures to accelerate over the next five years, according to a survey conducted for FICO by the Professional Risk Managers' International Association. The survey, which polled 188 risk managers at banks throughout the U.S., showed that bankers expect delinquencies on consumer loans to rise, underwriting standards to become more strict and the housing sector to continue to struggle far into the future.

"Housing has been an enormous drag on the economy for over three years as U.S. households lost trillions of dollars in equity," said Dr. Andrew Jennings, chief analytics officer at FICO and head of FICO Labs. "While the housing sector will almost certainly gain strength during the next nine years, many bankers clearly believe prices will remain depressed for half a generation. This puts the devastation of the housing crash into perspective."

Bankers in the survey also expressed concern about consumer credit health beyond mortgages. Over the next six months, a large number of survey respondents indicated they expect the number of people defaulting on car and student loans and credit cards to rise.