PNC to Sell $2 billion in Loans

Published on:
8 December 2006 at 06:33 a.m. ET

Written by: Unknown Author –

http://www.insidearm.com/news/00038828-pnc-to-sell-2-billion-in-loans/

by Patrick Lunsford, CollectionIndustry.com

PNC Bank said Thursday that it is planning to offload some $2 billion in residential mortgage loans through securitization or outright sale.

In a filing with the Securities and Exchange Commission, PNC said the loans will be accounted for as “loans held for sale” as of Sept. 30. The bank also said it will record a pretax loss of $50 million in the third quarter as a result. The loss represents the decline in the value of the loans, which is largely due to increased interest rates.

PNC is planning on replacing the loans with other residential mortgages in the near future.