National City Corp. Warns
From the WSJ: National City Warns of Loan Losses
National City Corp. expects to set aside about $700 million to cover loan losses in the fourth quarter and said it incurred mortgage-related charges of about $200 million in October and November.
“The mortgage business continues to be under stress,” the financial-services company said in a Securities and Exchange Commission filing….
Here is the National City SEC filing.
Click on graph for larger image.
This graph shows the key nonperforming assets of National City Corp. Residential REO’s are including in National City mortgage and First Franklin nonperforming assets.
According to the SEC filing:
Credit quality in the commercial and core consumer portfolios, including direct home equity lending, remains satisfactory. The areas of elevated risk continue to be in the run-off portfolios of First Franklin non-prime mortgages, especially seconds; broker-originated home equity loans and lines of credit associated with the former National Home Equity business; and certain sectors […]
