Until the rumor was proved true.
National City Mortgage has shut down it’s wholesale side.
I heard rumors early this morning but I didn’t want to believe it.
Just now – I got the email:
Dear Mike, As you know, rapidly changing conditions in mortgage markets have resulted in significant challenges in the industry. Like many mortgage lenders, National City has taken a number of aggressive steps to manage through the unprecedented disruption in the mortgage, housing and credit markets. However, continued volatility, coupled with a forecasted ongoing cyclical downturn in origination activity, requires that we take additional action. We have made the decision to exit the Wholesale lending business. As of 2:30 PM Eastern Time on Monday, December 31, 2007, we will stop taking registrations. We will stand behind our commitments and honor previously granted approvals in the pipeline, and will continue to have support staff to complete the processing of your pending registrations and locked pipeline. While this decision was not taken lightly, this business line no longer fits with National City’s future mortgage business strategy. National City Mortgage will continue to offer a comprehensive suite of mortgage products that will satisfy most consumers’ needs. We will continue to originate loans through our Retail Lending channel via our retail mortgage branches as well as through National City’s retail bank branches. Regarding the existing pipeline, loans registered need to be delivered by January 8, 2008. If a loan is floating, it must be locked (hard locked) with an expiration date less than or equal to February 29, 2008. The loan must be closed/funded by February 29, 2008. If a loan is locked with an expiration date prior to February 29, 2008 extensions will be allowed until February 29, 2008. The loan must be closed/funded by February 29, 2008. Beyond February 29th, we will not be providing extensions of either the approval or a lock expiration date. If a loan is locked (hard locked) with an expiration date past February 29th, it will be honored provided it does not require the resubmission of expired credit documents. Such a situation would need to close/fund prior to the expiration of the credit documents. Alternatively, locks expiring past February 29th, will not be extended, though the approval and credit documents have not expired. All construction permanent loans that have been through initial close will follow the policies already in place. All non-construction capped rate loans will follow the policies already in place except we will not allow any extension to the cap. Also any capped loan not currently approved, will require a new appraisal and credit report at time of hard lock. We appreciate the importance of your relationship with the borrower and reasonable exceptions to the above will be considered when they involve the purchase of home. Please contact your Account Executive, unless otherwise directed, in those instances. We thank you for the loyal relationship we have experienced with your company. Joe Cartellone CEO / President National City Mortgage Todd Householder Executive Vice President Wholesale Lending National City Mortgage
I’m very sorry to see them shut down. There are some very fine people I trusted and liked at NCM.
I was an employee of NCM Wholesale. They tried to tell us that we were not going to be fired and that they wanted us along for the long haul before Buck Bibb dropped the email this morning. There was a conference call later this morning where all employees were informed where to send their stuff, and where Buck Bibb attempted to blame the AE’s for the close to 300 million dollars that they are out in FL. He told AE’s that “if you had been more selective with your brokers, then this whole thing might not have happened.” Gotta love how they stick it to the little guy that busted their asses for over 10 years for nothing.
I was an AE for Commonwealth United (The broker wholesale division that eventually took on the NCM name) for three years. It was a great company, the best lender I ever worked for. That really sucks they are shutting down. Blaming the AE’s is laughable. AE’s don’t make underwriting decisions, or approve brokers. They aren’t even supposed to try.
A real Happy New Years message. I think we will be seeing more of this over the next few months.
Sorry to see Nat City go, and it was kinda like a strange roller coaster…
On November 12th they increased their max loan amount from 1.5M to 2.5M.
A couple weeks later they cancelled non-conforming loans altogether.
Now they’re out.
I wish all the Nat City people the best.
I got the email too. They recently said that they weren’t going to expect any more losses. Certainly makes you wonder about what companies say.
I just got the news this morning and I am so sorry to hear it.
Does anyone know if pricing of pools is being adjusted anywhere based on whether the paper is retail originated versus wholesale?
UK adverse lenders have dramatically cut their risk by withdrawing many sub-prime product. In Kensingston have withdrawn all their sub-prime range.
A real Happy New Years message. I think we will be seeing more of this over the next few months.