"which is also concerning to us."

From Calculated Risk:

"Another effect we're having has been a challenge with the media and with consumer groups; and with consumers willingness just to walk away from homes. We haven't seen anything like this since Texas during the oil bust and people just willing to declare bankruptcy and walk away. We are seeing a lot of that similar type social phenomenon occur, particularly in California, which is also concerning to us."

Mark Hammond, CEO, Flagstar Bancorp conference call.

This really is the tip of the iceberg. As this kind of behavior becomes socially acceptable, there is going to be an avalanche of foreclosures. These houses will eventually, some way, come back into a housing market that is already flooded with inventory. This is starting to feel more like a 3 to 5 year event than a 1 or 2 year event.

Update: I listened to this call myself and made some corrections to the transcript above. If you want to hear this quote it comes at about the final quarter of the call.