Updating an earlier investor presentation I blogged about on September 6, National City disclosed today that it expects mortgage losses to hit the high end of a previously-estimated $130 million to $160 million range. From the SEC filing:
The effect of the various costs and charges was previously estimated to produce an after-tax loss in Mortgage Banking of $130 million to $160 million for the third quarter, excluding MSR (mortgage servicing rights) net hedging results. While the actual amount of the loss will not be calculable until after the close of the third quarter, information available as of the publication of this report would suggest that the loss is more likely to be around the high end of the range.
A look at the numbers shows the sort of stress National City's mortgage portfolio is currently under: nonperforming assets jumped to $1.02 billion in August, up a stunning 16.4 percent from July's total alone (and up 52.8 percent from year-ago levels). 90+ day delinquencies also jumped to $1.26 billion, up 8 percent from July and more than 63 percent from August 2006.