As we continue to analyze and manage our product set, Chase has made the decision to discontinue offering our Subprime and Home Equity products through our Wholesale channel.

New Wholesale Subprime and Home Equity registrations will not be accepted after Friday, May 16, 2008.

Mortgage lenders are shutting down your home equity lines of credit in order to preserve their interests and combat homeowners from over mortgaging in depreciating markets.

National City Closes Residential Wholesale Lending

National City will reduce its quarterly dividend by 49 percent and cut 900 more jobs as it stops making home loans through their wholesale division.

The lender has cut its staffing by 3,400 positions in the past year, including the reductions announced today, as the credit crunch worsens.

National City will continue making home loans through its own staff, the bank said. The housing market “requires aggressive steps to overcome the near-term challenges”, Chief Executive Peter Raskind said in a statement today.

“It is clear that origination volumes will be lower going forward”, it appears that the type of mortgages offered by National City are no longer desired on the secondary market.

Mortgage companies who offer Home Equity Lines of Credit or ’second mortgages’ find themselves in a particularly awkward position in todays market. Millions of homeowners that have a Home Equity Line of Credit have little or no equity left on their home, many are in depreciating markets and even more have taken out the stated income or as they are also known as, ‘liar loans’. What makes this awkward for lenders is the fact that in the event of a foreclosure, which could be in the range of 2 million in 2008, the primary mortgage holder is financially compensated first and “IF” there is any remaining money available it goes to the second mortgage holder. Often times the second mortgage holder receives little or no compensation.

National City will pay 21 cents a share on Feb. 1 to shareholders of record on Jan. 14, the Cleveland based bank said. The dividend was previously 41 cents a share.

National City says its mortgage business could lose up to $160 million in the third quarter, according to a new filing with the Securities and Exchange Commission.

The bank had previously estimated losses of between $130 million and $160 million due to its mortgage problems but is now confirming that the hit will be “around the high end of the range.” In the filing, the Cleveland-based bank said risk “remains elevated in the $1.7 billion First Franklin second lien portfolio and in certain discrete home construction and investment real estate projects.”

Earlier this year, National City sold its subprime division, First Franklin Financial to Merrill Lynch but retained some of First Franklin’s second-lien production on the bank’s balance sheet.

Here is the latest update from National City Home Equity. It appears for the near future Home Equity programs at National City will no longer be available to the wholesale channel.

*****************************************************
To: All National City Home Equity Origination Sources

RE: Suspension of Approving Loan and Line Applications

Date: August 7, 2007

Effective Monday, August 6th, 2007, National City Home Equity suspended the acceptance of new applications and the issuance of preliminary approvals on previously submitted loan and line applications.

Loans and lines in the pipeline will be handled as follows:

Fixed-Rate Loans:

· Fixed-Rate Loans with a locked rate and a final approval must be funded within the remaining lock period. Locks cannot be extended.

· Fixed-Rate Loans with a locked rate and a preliminary approval must have remaining conditions cleared and fund within the remaining lock period.

· Fixed-Rate Loans with a floating rate and a preliminary approval can be locked at prevailing rates through Monday, August 13th, 2007. The application must qualify for final approval at the locked rate. The remaining conditions must be cleared and the loan funded prior to the 60-day lock expiration.

Home Equity Lines of Credit:

· Lines of Credit with a final approval must be funded within 60 days of the final approval date.

· Lines of Credit with a preliminary approval must have remaining conditions cleared and fund by Friday, October 5th, 2007.

Please use caution with National City Home Equity!

Not exactly sure of their status but I am told the following:

”Systems are down and we aren’t accepting any new loan applications, conditions can’t be cleared, and we are only able to send out closing docs on deals that are already cleared to close. We are still able to fund loans.”

I am unable to verify that loans should be moved…BUT…
As an option….I have verified with both HSBC and Citi Home Equity that they have no issues accepting new loans, or with closing/funding loans.

CLEVELAND, Aug. 6 /PRNewswire-FirstCall/ — National City Home Equity (NHE), the broker based wholesale home equity lending unit of National City Corporation’s (NYSE:NCC) subsidiary, National City Bank, today issued the following statement regarding a decision to suspend NHE approvals of new applications for new home equity loans and lines of credit:

“In response to market conditions, NHE has suspended approvals of new home equity loans and lines of credit. The move by NHE does not impact National City’s Retail Bank, which continues to offer home mortgage and equity lines and loans directly to customers through its 1,300 branch network in eight states.

• 7-year interest-only option FRL base rate of 7.625% for June fundings
  • No and low closing cost options available
• Borrower may lock at closing or anytime during the draw period
• Unlimited number of Fixed Rate Lock (FRL) advances
• Unlock an FRL anytime without charge or relock at a lower rate for only $50
• Additional amortizing FRL terms available: 5-,10-,15-, or 20-year
• Minimal documentation requirements for income verified transactions:
  • One most recent pay stub for salaried borrowers
  • First two pages of the most recent signed personal tax return for self employed borrowers
    
  • Additional documentation may be required if extraordinary items such as capital gains, bonuses or overtime are needed to qualify

Call 1-888-577-8338 To Qualify For a

Home Equity Line of Credit with a Fixed Rate Lock Option