National City Home Equity Says It Suspends Loan Approvals

[hatrack]

Source: Marketwatch

SAN FRANCISCO (MarketWatch) -- National City Corp. (NCC : National City Corporation (NCC28.64, +1.42, +5.2%) said on Monday that its National City Home Equity unit has suspended approvals of addition loans or lines of credit in response to market conditions. "This is one of a number of steps National City has taken in recent weeks to help ensure that originations are in line with existing and anticipated market conditions," the bank said in a statement that was e-mailed to MarketWatch.

EDIT

Read more: http://www.marketwatch.com/news/story/national-city-home-equity-says/story.aspx?guid=%7B2F9B327A%2D862C%2D42B2%2DAC9F%2D44BCAA51DBE6%7D&dist=hplatest

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Extremely short article - it was only one paragraph and I cut that down to comply with DU Rules.

[Rainscents]

1. So, it all began... CLAPS of Banking system.

[Purveyor]

2. Fact of the matter is, they have no money to lend as foreign investments for risky banking practices

have dried up.

[Alexia Wheaton]

3. And Fox Loser Channel tells me that all is well!

NOT!

[Kingshakabobo]

4. it's worse than the article lets on.....

Apparently, they aren't funding APPROVED loans... That's a big deal.

This is an email we received today (I'm a mortgage banker):


I just got off the phone with XXXXX. National City Home Equity has stopped taking applications. And they are suspending anything that is in their pipeline. They have exhausted their Line of Credit ($5,000,000,000) and no one will buy any 2nd mortgages. There is no problem with the quality of the loans, it is an inability to find anyone to sell them to. The Line isn't calling their loans, they just have no more money to lend. He doesn't know how long this will last, but they are temporarily taking no new business. XXX

[cliss]

5. The Dominoes

are starting to fall. This is like watching a train wreck in slow motion.

Wells Fargo just suspended its sub-prime mortgage loans. If more big companies start to tumble, they could pull down the whole House of Cards.

I'm going to be watching very closely over the next few days.