In response to the downturn in the mortgage, housing and credit markets, National City Bank has closed its wholesale mortgage division. The decision affects 900 positions.
National City Mortgage will continue to originate mortgage loans directly to consumers in all 50 states through its retail office network, as well as through 1,400 National City Bank branches in nine states.
“We remain committed to the mortgage business, as the home mortgage is an essential consumer product,” said National City Chairman, President and CEO Peter E. Raskind. “However, it is clear that origination volumes will be lower going forward, and we are configuring our mortgage business to operate profitably in that environment.”
National City also has undertaken several measures to improve both the level and momentum of earnings in its core banking businesses, including a company-wide expense reduction initiative in the third quarter of 2007 that reduced staffing in the core bank by approximately 800 positions. Combined with the mortgage reductions, the company has reduced headcount by a total of 3,400 positions going into 2008.