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National City Warehouse - Warehouse Lending



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The news of PNC's decision to "pull the plug" on National City's Warehouse Lending division came out in mid-March, but the complete shutdown won't occur yet for months. Contracts will expire, clients are being given time to locate other funding sources - but the fact remains... an icon of warehouse lending now has its days numbered.

With an estimated $4 to $5 billion in outstanding commitments, Cleveland, OH-based National City Corp. ranked among the largest providers of warehouse lines-of-credit to non-bank mortgage lenders which rely upon them to fund loans short-term until they are sold on the secondary market. National City's facility was also one of - if not the - longest-lived of such financing channels available to the mortgage market, having been in existence for over fifty years. National City Corp. was acquired by PNC Financial Services Group as of 2008-12-31.

Traditionally a conventional "large-cap" warehouse lender (lines in excess of $10 million for Agency, FHA/VA loans), National City took on small-cap warehouse lending (and Subprime) when it acquired the operations of Cincinnati, OH-based Provident Financial Group, Inc., Provident Bank and its Provident Consumer Financial Services (or "PCFS") unit in 2004. National City's large-cap warehouse lending operations, referred to as "National City Warehouse Lending" or "NCWL", continued to operate separately out of Louisville, KY, and absorbed the small-cap group in March of 2008 (which had become to be known as "National City Warehouse Resources" or "NCWR" after the acquisition of PCFS).

PNC had dabbled in - and subsequently shelved - warehouse lending years before the National City acquisition, and it came as more of a disappointment than a shock when the announcement was made they would exit the arena. Some sources questioned if TARP funds would be used to motivate PNC to reverse the decision in light of the severly diminished capacity of the warehouse lending sector, but that does not appear to be the case.

We will continue to watch as this slowly unwinds over the next year or so. Meanwhile, your comments below are always welcome or you can contact us directly if you have more information to contribute.

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Important: This company is on our list of lending operations that are apparently ailing or which we think are worth watching for any other reason. We make no representation or claim that any company on this list will or will not continue as a going concern, or change in any other way, adverse or beneficial. If you have concerns about this company, we suggest contacting them directly and/or checking with other reliable sources.