I’ve been hearing some rumors about National City Mortgage lately.
I was told quite recently in fact that they may be closing retail offices throughout the US, buying out the leases on those closed branches, and taking a loss in the 3rd quarter.
Additionally, I’ve been notified that as many as 13 branches may be shut in California alone.
The affected branches are said to be those which have fallen below the minimum profitability mark set by parent company National City Bank.
I’ve been told that these purported branch closures could be completed around the end of September, if not earlier.
Along with the branch closures, I was told that there have been two series of layoffs over the last two weeks, with another expected this week.
And last month, National City Corp. consolidated operations and workers from its National Home Equity business with its National City Mortgage unit, resulting in additional undisclosed layoffs.
On August 6th, National Home Equity suspended approvals of new home equity lines of credit and home equity loans because of harsh credit conditions on the secondary market.
Update 9/6/07: National City revealed an unexpected $200 million charge at its mortgage operations during a conference with investors.
Hello brutal September.