National City Mortgage Ooops!
Yahoo News- "National City Corp. said Thursday it will trim its previously stated third-quarter results after discovering the value of mortgage servicing rights were overstated and the amount of reserves for repurchased mortgage loans was understated."
"The mortgage servicing rights were $21 million less than National City had estimated, which will lower loan servicing revenue to $104 million from the $125 million amount it stated earlier.
The company also said that reserves for repurchased loans were understated by $18 million and would be lowered to $215 million."
"The updated amounts will affect the National City Mortgage and First Franklin business units, and lowered third-quarter net income to $551 million to $526 million."
"National City said it figures mortgage serving right values and reserves for repurchased loans using an estimation process that applies the "best available information at the time." After it determined the values for the recent third quarter, more information became available and based on it, National City will revise its earnings."
"National City is the second-largest bank in the Dayton area with $2.2 billion in local deposits and more than 50 branches. It's banking networking is primarily in Ohio, Illinois, Indiana, Kentucky, Michigan, Missouri and Pennsylvania and had more than $140 billion in total assets as of April."