Future of National City Warehouse in Doubt

Even though the warehouse lending platform of National City is among the largest in the mortgage space - and continues to be profitable - PNC Financial Services plans to close it by mid-year 2010, according to warehouse lending officials. A spokesman for PNC confirmed the closing but declined to provide details. Commercial banks and other investors interested in the business have contacted PNC about buying the division but those talks have gone nowhere. "It's really a shame," said one warehouse advisor, requesting his name not be used. "They still have about $1.5 billion in commitments." This official noted that nonbank residential originators continue to fear that none of the remaining players in warehouse lending will fill the void once the National City unit ceases to exist. (For the full story see this week's issue of National Mortgage News.)