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Mark Greene, the CEO of credit-scoring formula maker FICO, predicts that the next six months will lead to more mortgage and credit card defaults.

Greene points to 10 percent unemployment and depressed home prices as the reason why no bailout can effectively help the 30 percent of home owners who are underwater on their mortgages. He says the reality of this is so clear to many home owners that they are changing their priorities and paying off car loans and credit card debt before they pay the mortgage.

“I’m a notch less sanguine than some financial observers are,” said Greene, in an interview with Bloomberg. “We still have a very considerable period of working out credit issues.”

Source: Bloomberg, Alexis Leondis