At least two bidders still have an interest in buying National City‘s warehouse lending group from PNC Financial Services, but time is running out on the unit, according to sources close to the situation.
A PNC spokesman confirmed that the bank plans to wind down the operation this summer and would not speculate on a possible sale.
At yearend, the NatCity warehouse group had just over $1 billion in commitments. A source close to the matter said that although some investors are still looking at the division, “nothing is imminent.”
Several of NatCity’s nonbank warehouse customers said they have been looking for alternative financing since January and have found an improved market.
According to figures compiled by National Mortgage News‘ Quarterly Data Report, NatCity/PNC ranks third nationwide in terms of warehouse commitments.
Over the past six months, more regional banks have entered the space but will only finance nonbank firms that lend in their bank footprint.