National City To Cut 1,300 Jobs

[OhioChick]

Source: AP

POSTED: 2:48 pm EDT September 6, 2007

CLEVELAND -- National City Corp. said Thursday it is laying off 1,300 workers to shrink the bank's struggling mortgage business.

The Cleveland-based bank said scaling back its home lending businesses and shifting the mortgage loans on its books will cost about $200 million before taxes.

National City said it is cutting back on issuing home loans the bank cannot sell to government agencies like Fannie Mae and Freddie Mac. Demand for mortgage debt not guaranteed by a government-sponsored enterprise has rapidly dried up in the past six weeks.

The bank also will suspend issuing home equity loans through brokers. Its home equity unit and mortgage unit will be combined into one subsidiary.

Stung by decaying credit quality, mortgage debt and investments backed by home loans have lost a lot of value this year. Homeowners are missing payments on their mortgages more frequently, and more than 50 lenders have gone out of business.

Read more: http://www.newsnet5.com/news/14059734/detail.html

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More job loss in Ohio = More foreclosures...

[UpInArms]

1. $200,000,000 is a lot of money for 1,300 jobs

that makes each job cost $153,000 just to terminate - :wtf: