Federal Reserve advisory group warns foreclosures to get worse

Members of a Federal Reserve advisory panel on Thursday warned of a rising tide of US mortgage foreclosures in the coming year, as subprime borrowers in particular are expected to feel the sting. Members of the Fed's Consumer Advisory Council said the number of foreclosures in 2007 is expected to exceed the roughly 1.2 million from 2006. "Foreclosures are at a historic high, and they're going to get higher," said Alan White, a supervisory attorney with Community Legal Services, adding that subprime loans represented about 50% of last year's foreclosures. "It's getting to a point where it's no longer an anecdotal problem, but it relates to the nature of the product," White said, referring to the proliferation of subprime mortgage products.