NatCity May Sell B&C Servicing Unit
National City Corp., here may sell its subprime servicing division, which ranks 12th nationwide in B&C housing receivables.
As Mortgage Servicing News went to press, the bank had just announced that it was weighing "strategic alternatives" for First Franklin Financial Corp., San Jose, Calif., and National City Home Loan Services, Pittsburgh, as well as a direct-to-consumer division called NationsPoint.
"Strategic alternatives" is a euphemism for a sale. At the end of March NCHLS had $39.9 billion in subprime receivables. (FFFC is the production arm of the company.)
In a statement NatCity revealed its intentions regarding the subprime units, but did not address the future of its prime division, National City Mortgage, Miamisburg, Ohio.
National City Mortgage services $169 billion in home loans, ranking 9th nationwide.
At press time National City had not responded to telephone calls from MSN.
In the first quarter NCM saw its residential production tumble by 41%, the largest decline among the top 20. NCM ranks 18th overall. Its servicing grew by just 2% in the first quarter. (c) 2006 Mortgage Servicing News and SourceMedia, Inc. All Rights Reserved. http://www.mortgageservicingnews.com http://www.sourcemedia.com