PNC Financial Services is close to picking a winning bidder on a $600 million portfolio of mostly non-performing second mortgages that belonged to National City Mortgage. Several hedge funds have been mentioned as possible bidders, said one investment banker close to the deal. PNC bought National City and its mortgage business late last year. NCM was a large player in the second lien market, including 80-10-10 structures. A PNC spokesman did not return a telephone call about the matter. Meanwhile, traders say that Bank of America recently came to market with a $100 million package (perhaps larger) of mostly non-performing first liens, some of which came from Countrywide Home Loans. BoA has a policy of not commenting on its NPL auctions.
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