National
National City to layoff 1,300 employees, take charges
Friday, September 07, 2007 3:33:25 AM ET
newratings.com
NEW YORK, September 7 (newratings.com) - National City Corp (NCC.NYS) Thursday announced that it aims to layoff 1,300 workers from its struggling mortgage business and write down $200 million. The Cleveland-based company said it was suspending the origination of home equity loans sourced through brokers. The company merged its National Home Equity unit into National City Mortgage in August.
National City said the merger of its two units would eliminate about 500 jobs and result in up to $10 million of severance and other charges in the third quarter. The company indicated that it was cutting back on issuing "nonconforming loans," or mortgages whose risk cannot generally be transferred to government-sponsored enterprises such as Fannie Mae, which will result in the elimination of about 800 jobs.
National City said the layoffs represent 4% of its total workforce of 32,445 as on June 30 and would lead to severance and other charges of $18-$25 million in September. The company expects the mortgage business to post after-tax losses of $130-$160 million in the third quarter, excluding after-tax hedging gains on mortgage servicing rights estimated at $20-$25 million.
Friday, September 07, 2007 3:33:25 AM ET
newratings.com
NEW YORK, September 7 (newratings.com) - National City Corp (NCC.NYS) Thursday announced that it aims to layoff 1,300 workers from its struggling mortgage business and write down $200 million. The Cleveland-based company said it was suspending the origination of home equity loans sourced through brokers. The company merged its National Home Equity unit into National City Mortgage in August.
National City said the merger of its two units would eliminate about 500 jobs and result in up to $10 million of severance and other charges in the third quarter. The company indicated that it was cutting back on issuing "nonconforming loans," or mortgages whose risk cannot generally be transferred to government-sponsored enterprises such as Fannie Mae, which will result in the elimination of about 800 jobs.
National City said the layoffs represent 4% of its total workforce of 32,445 as on June 30 and would lead to severance and other charges of $18-$25 million in September. The company expects the mortgage business to post after-tax losses of $130-$160 million in the third quarter, excluding after-tax hedging gains on mortgage servicing rights estimated at $20-$25 million.
Labels: layoffs, National City Bank
0 Comments:
Post a Comment
<< Home