U.S. Subprime Losses Projected at $1.4 Trillion
Global turmoil brought the financial markets to their knees last month, according to a new report that estimates global losses from the U.S. mortgage meltdown will now reach $1.4 trillion.

The report, published by the International Monetary Fund, said that the collapse or near-collapse of several key institutions during September added more stress to an environment where financial institutions have been shedding bad assets, reducing borrowing and seeking new capital.

"Confidence in financial institutions and markets has been badly shaken by the global credit turmoil that has its roots in the U.S. subprime mortgage market but that has spread globally to other financial sectors," the IMF said.
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Lack of FHA Kills Ohio Firm A once-booming mortgage company that specialized in subprime refinances has shut down. The Ohio-based company's demise appeared to be tied to its lack of government loan programs.

Mother of All Settlements
Bank of America Corp. will spend mortgage than $8 billion to settle charges of predatory lending at Countrywide Financial Corp.

Subprime Reset Defaults Low as Foreclosures Sales Fall
Subprime foreclosure sales fell in August, pushing overall foreclosure sales lower, according to a new report. Data indicate that subprime resets are not proving to be as big a problem as previously anticipated.

Serious Delinquency Climbs as 30-Day Lates Ease
Payment resets appear to have little impact on nonprime defaults, according to a new report that also indicates fewer loan modifications are being started as serious delinquency is rising. But delinquency of between 30 to 59 days has moderated.

GSE Nonprime Performance Disproportionately Bad
Had Fannie Mae and Freddie Mac avoided subprime and Alt-A mortgages, delinquency and foreclosures would have been cut in half. While subprime and Alt-A loans account for just 17 percent of the loans serviced for the two government sponsored enterprises, they account for around one out of every two foreclosures.

RMBS Ratings All Bad, CMBS Mixed
Recent negative ratings actions were spread across securitizations backed by second liens, home-equity lines-of-credit, Alternative-A loans and prime mortgages. One servicer boasted of its improved servicer status and another saw its rating downgraded. Commercial mortgage-backed securities saw a mix of ratings actions.

The Wholesale Wire
A national wholesaler has cut its construction lending program, but some hard-money programs are still expanding. One new offering promises to help wholesale lenders ensure they fund no loans originated by any unlicensed loan officers.

Lehman Servicing Subsidiary Downgraded
The servicing subsidiary of Lehman Brothers Holdings Inc. has seen its subprime servicer rating cut as a result of Lehman's bankruptcy today.

Regulators Release Bank Servicing Metrics
Subprime and Alt-A mortgages continue to account for a disproportionate share of defaults and foreclosures at banks, according to a new report. Foreclosure prevention activity is outpacing new foreclosures filed.