Industry News

First Franklin adds employees, boosts loan production

Sale to Merrill Lynch expected to close this year

National City Corp. has completed the sale of $3.6 billion in loans originated by its subprime mortgage lending subsidiary, First Franklin Financial Corp., and expects to realize a $1 billion gain on the sale of First Franklin's origination and servicing platform by the end of the year. The sale of $3.6 billion in First Franklin loans was less than planned because of payoffs and exclusions permitted by the sale contract, National City reported Thursday in a Securities and Exchange Commission filing. Another sale of $650 million in First Franklin loans is expected to close in December. The sale of First Franklin to Merrill Lynch & Co. is subject to regulatory approval and expected close by the end of the year, National City said. In the meantime, First Franklin added 46 employees in November and has boosted its workforce by 116 workers since this spring, to 2,506. Total employment at National City stood at 33,751, down from 34,470 at the same time last year. The total includes 6,8...

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