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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The newest addition to the Panorama group of companies aims at offering opportunities to first-time home buyers through wholesale and correspondent channels.
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The government-sponsored enterprise has reportedly added a new vendor to a test in which it buys certain loans without title insurance or attorney opinion letters.
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Federal Reserve Gov. Christopher Waller said that criticisms of the Fed's balance sheet and calls to return to a scarce reserves system are misinformed, saying that much of the central bank's balance sheet is the result of activities outside the Fed's control.
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Several large banks are deploying agentic AI. There's a big difference between managing people and managing AI agents.
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The New Hampshire congresswoman promised new investigations into scam drivers, including AI and digital payment platforms.
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The 30-year fixed mortgage rate rose for the first time in six weeks, driven by Friday's strong jobs report and renewed uncertainty around tariffs.
July 10