Digging out from Under the Subprime Avalanche (Servicing‪)‬

The credit crisis that began in the mortgage inadustry now threatens the nation's financial system. Fueled by rising delinquencies and falling house prices, aggregate writedowns based on global holdings of U.S.-originated and securitized mortgages as well as consumer and corporate debt have risen to $1.4 trillion, according to the International Monetary Fund (IMF), Washington, D.C.--that's up from an estimate of$945 billion in April. Mortgage lenders are feeling the pain from an avalanche of foreclosures. In April, Zurich, Switzerland-based Credit Suisse Group estimated that total foreclosures could reach 6.5 million by the end of 2012--2.7 million of them subprime loans.