NatCity: 3Q Mortgage Losses Could Hit $160M

National City Corp. says its mortgage business could lose up to $160 million in the third quarter, according to a new filing with the Securities and Exchange Commission.The bank had previously estimated losses of between $130 million and $160 million due to its mortgage problems but is now confirming that the hit will be "around the high end of the range." In the filing, the Cleveland-based bank said risk "remains elevated in the $1.7 billion First Franklin second lien portfolio and in certain discrete home construction and investment real estate projects." Earlier this year, NatCity sold its subprime division, First Franklin Financial Corp., San Jose, Calif., to Merrill Lynch but retained some of First Franklin's second-lien production on the bank's balance sheet. NatCity can be found on the Web at http://www.nationalcity.com.