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Last week, National City Bank announced that they will lay off 900 employees from their National City Mortgage division.  National City has decided to shut down their wholesale mortgage department.  The wholesale department was responsible for originating first and second mortgages with other mortgage brokers.   National City will still originate mortgages to the consumers through their branch office networks.

National City Bank is the the state of Ohio’s largest bank.  The layoffs can be directly tied to the problems in the sub-prime mortgage crisis.  This is another example of Banks “circling the wagons” and tightening credit options.  As an Exclusive Buyer Agent I am actually more concerned with the trend of banks restricting or tightening credit options then with the layoffs.  Tightening credit options & layoffs are both terrible for our economy.  But, in my opinion, the bank management decisions to tighten credit and make it harder for the consumer to obtain mortgages will be a lot more detrimental to our economy and recovery in the long run.  Contact me if you have any questions or if you are looking for a lender.

HomeBuyer Advocate Mike