Brokerage Buys National City Mortgage

\r\nNational City Corporation is known for being an alternative credit, or Alt-A, mortgage lender. Now it is going to be known as a part of brokerage Merrill Lynch. The investment company announced Tuesday that they would acquire the entire rights to all National City branches for a price tag of $1.3 billion. National City Corporation includes First Franklin Financial Corporation, a mortgage origination franchise, and National City Home Loan Services, as well as NationPoint.\r\n

The move was in response to National City’s desire to expand beyond its Midwest roots, and Merrill Lynch’s desire to expand their portfolio to include mortgage services. The subprime lender had announced earlier this year the intent to acquire Fidelity Bankshares and Harbor Florida Bancshares, both based in south Florida. At this time, Merrill Lynch has not commented that the acquisitions would be negated by the new contract. Lynch hopes that the new plan will increase their platform to clients, as well as creating a synergy between financial planning and home mortgages.\r\n