The nation’s eighth-largest bank, National City Corp., is looking to sell some of its mortgage lending units as it moves into retail banking in Florida.

Cleveland, Ohio-based National City announced Monday that it may sell its First Franklin Financial subprime residential mortgage unit and its National City Home Loan Services processing unit as rising interest rates slow demand for home loans.

An analyst at Friedman Billings Ramsey & Co., Gary Townsend, told Bloomberg News that San Jose, Calif.-based First Franklin could sell for $800 million to $1.2 billion.

National City announced today an agreement to acquire Harbor Florida Bancshares, the holding company for Harbor Federal Savings Bank, which has $3.2 billion of assets and 40 branches on Florida’s east coast.

Harbor Florida stockholders will receive National City common stock in a transaction totaling approximately $1.1 billion, National City said. The deal is expected to close in the fourth quarter of 2006, giving National City a retail banking presence in Florida to supplement its existing residential and commercial real estate lending business.

Show Comments Hide Comments

Comments

Sign up for Inman’s Morning Headlines
What you need to know to start your day with all the latest industry developments
By submitting your email address, you agree to receive marketing emails from Inman.
Success!
Thank you for subscribing to Morning Headlines.
Back to top
Hear from Realogy, Pacaso, SERHANT., Spotify, Redfin, Douglas Elliman, and 100+ more leaders at ICNY.Register now×
Limited time: Get 30 days of Inman Select for $5.SUBSCRIBE×
Log in
If you created your account with Google or Facebook
Don't have an account?
Forgot your password?
No Problem

Simply enter the email address you used to create your account and click "Reset Password". You will receive additional instructions via email.

Forgot your username? If so please contact customer support at (510) 658-9252

Password Reset Confirmation

Password Reset Instructions have been sent to

Subscribe to The Weekender
Get the week's leading headlines delivered straight to your inbox.
Top headlines from around the real estate industry. Breaking news as it happens.
15 stories covering tech, special reports, video and opinion.
Unique features from hacker profiles to portal watch and video interviews.
Unique features from hacker profiles to portal watch and video interviews.
It looks like you’re already a Select Member!
To subscribe to exclusive newsletters, visit your email preferences in the account settings.
Up-to-the-minute news and interviews in your inbox, ticket discounts for Inman events and more
1-Step CheckoutPay with a credit card
By continuing, you agree to Inman’s Terms of Use and Privacy Policy.

You will be charged . Your subscription will automatically renew for on . For more details on our payment terms and how to cancel, click here.

Interested in a group subscription?
Finish setting up your subscription