PNC Financial Services, which has limited participation in the mortgage business, may be wading back into the game with its purchase of National City Corporation. But don't bet on PNC using the National City platform to expand its mortgage presence much. In a conference call, PNC executives said they expect to see high cumulative losses on National City's mortgage and home equity portfolios, suggesting that PNC will exit "low return asset classes" and instill a "moderate risk culture" at the combined firm. PNC estimates that losses on NatCity's remaining $4.5 billion non-conforming mortgage portfolio will total 43.5%. The remaining $10 billion third-party originated home equity portfolio is expected to see a loss ratio of 52.5%. In the all stock deal, PNC has agreed to pay $5.2 billion, or $2.23 per share, for NCC. The price represents a discount of almost 20% to NCC's share price the day before. PNC highlighted the deposit franchise, which will make it the fifth largest bank by deposits in the nation, in explaining the deal. PNC largely exited the first lien mortgage space in 2001 when it sold its mortgage subsidiary to Washington Mutual. However, PNC currently operates a mortgage business through a joint venture relationship with Wells Fargo and heavily markets HELOCs to its bank customers. Both banks are mid-sized players in commercial mortgages.
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State housing finance agencies had a resurgent fiscal 2023 and the recent fed funds rate reduction could have a mixed impact on them, Fitch Ratings said.
September 27 -
The Federal Housing Finance Agency issued guidance to ensure the Federal Home Loan Banks are lending based on the credit worthiness of the member bank, not solely on the quality of the collateral.
September 27 -
Some recipients of the new multimillion-dollar funding announced this week include several organizations partnering with historically Black colleges and universities.
September 27 -
Specialized Loan Servicing allegedly charged borrowers $7.50 for processing mortgage payments made by phone. Most servicers, including Newrez, have axed this fee.
September 27 -
Democratic Gov. Gavin Newsom signed measures designed to bolster consumer protection rules. The bills target several issues that have also been percolating at the federal level.
September 26 -
The 13 largest homeowners insurance underwriters denied almost half of their climate-related claims last year, adding to property owner and mortgage servicer woes.
September 26