National City Corp. (Wholesale) - Wholesale, HELOC's, Correspondent
Update - 2008-06-09: Reuters reported Friday, 2008-06-06, that "National City Corp. has entered into a memorandum of understanding with federal regulators, effectively putting the bank on probation."
"Terms of the confidential agreement with the Office of the Comptroller of the Currency are not known," the article goes on to say. Memoranda of Underststanding, or MOA's, are explained:"
"Memoranda of understanding allow banks to work with federal regulators to address financial problems, without necessarily triggering alarm among depositors."
One poster on our Discussion Forum had this comment:
"An institution operating under a MOU with regulators can indeed be a serious situation. It is the contents of the MOU that are of importance, as many have operated under MOU's for various periods of time."
Shares have plummeted below $4.50 and the stock is now trading at 52-week lows.
Update - 2007-12-31: In a conference call today National City has announced the closure of it's Wholesale Lending Division. We understand their retail channel is "open and retooling for the future" according to an Area Manager.
In a quote from housingwire.com,
"The Ohio-based bank has been under earnings pressure from its former First Franklin Mortgage and Home Equity lending segments. National City sold First Franklin, a subprime lending operation, to Merrill Lynch in January in a deal valued at $1.3 billion; in August, the company said it would merge its Home Equity lending business with National City Mortgage, the bank's wholesale lending arm."
According to CNBC: "National City, one of the 10 largest U.S. banks, said Wednesday it will eliminate 900 jobs as it stops offering mortgages through brokers." More information will be provided as it becomes available.
From an email 207-12-31:
"Effective today all wholesale operations are done. Close and out of the wholesale business."
Thousands of people have read the Forum Topic on this company.
Update - 2007-10-23: Implosion of National City Correspondent Lending:
Many have written in to inform us that National City has decided to shutter its Correspondent Lending division. The announcement was made internally this morning via a conference call. It has since been made public both via emails to former Correspondent customers as well as a formal announcement on the National City Correspondent website (ncmexpress.com). The announcement reads:
If you have further details regarding the closure of NCC Correspondent, please let us know.
Original Implosion of National City Home Equity from 2007-08-16:
Many have written in today to notify us that National City Home Equity is no more. Per an article on Reuters regarding the closure of National City Home Equity:
The following email from an ex-Account Executive of National City Home Equity was forwarded on to us today:
We are unsure at this time how many are affected by this closure/merging. One has estimated that "hundreds laid off on the home eq side".
Original post to Ailing/Watch list from 2007-08-06:
As many have written in to note, National City Home Equity has stopped accepting applications for HELOCs. Marketwatch reports:
We are keeping a close eye on National City; if you hear anything regarding their operations, please let us know.
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Important: This company is on our list of lending operations that have "imploded". However, please note that "imploded" is a somewhat subjective and does not necessarily mean operations are ceased permanently: it can mean bankruptcy filing, temporary but open-ended halting of major operations, or "firesale" acquisition. All information here is provisional, and may contain inaccuracies (especially newer information). If you are planning on doing business with this company or any other one listed on this site, you should inquire with them directly on whether they can still meet your needs. Many are still operating in some capacity.