National City Revises EPS
National City Corp. will revise its third-quarter earnings from $0.90 to $0.86 per diluted share to reflect a lower estimated value for mortgage servicing rights and a higher estimate of reserves for repurchased mortgage loans than previously reported.
National City reduced the value of its mortgage servicing rights by $21 million below the previous estimate for Sept. 30. That means previously reported loan servicing revenue of $125 million is being changed to $104 million.
National City also said it had underestimated reserves for repurchased loans by $18 million. That means previously reported loan sale revenue of $233 million is being reduced to $215 million for the third quarter.
National City said the original estimates were based on the best available information at the time the company reported third-quarter results. Subsequently, National City obtained additional information that changed the estimated value of the MSRs and the reserves for repurchased loans, the company said.
The changes revise National City's previously reported net income of $551 million to $526 million. (c) 2006 Mortgage Servicing News and SourceMedia, Inc. All Rights Reserved. http://www.mortgageservicingnews.com http://www.sourcemedia.com