National City Closes Residential Wholesale Lending
National City Closes Residential Wholesale Lending
National City will reduce its quarterly dividend by 49 percent and cut 900 more jobs as it stops making home loans through their wholesale division.
The lender has cut its staffing by 3,400 positions in the past year, including the reductions announced today, as the credit crunch worsens.
National City will continue making home loans through its own staff, the bank said. The housing market “requires aggressive steps to overcome the near-term challenges”, Chief Executive Peter Raskind said in a statement today.
“It is clear that origination volumes will be lower going forward”, it appears that the type of mortgages offered by National City are no longer desired on the secondary market.
Mortgage companies who offer Home Equity Lines of Credit or ’second mortgages’ find themselves in a particularly awkward position in todays market. Millions of homeowners that have a Home Equity Line of Credit have little or […]
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