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| The PNC Financial Services Group Inc. announced a major consolidation of mortgage underwriting functions. But the company isn’t talking about how many employees are impacted.
In the second-quarter earnings call yesterday, PNC Chairman and Chief Executive Officer James E. Rohr discussed steps the company is taking to improve the quality and efficiency of its mortgage operation. PNC got into the mortgage business with its Dec. 31, 2008, acquisition of National City Corp. The operation originated $6.4 billion in the just-ended second quarter. Rohr said that underwriting at 90 existing sites will be consolidated into two sites in Chicago and Pittsburgh — where the company is headquartered. PNC spokesman Fred Solomon declined to say how many employees will be impacted by the consolidation. Rohr instead reiterated an overall staff reduction goal of 5,800 announced earlier this year as a result of the National City acquisition. He also pointed to updates outlined in the second-quarter earnings, which indicated the number of mortgage employees finished June at 3,693 — rising from 3,596 at the end of March. Among aggressive steps PNC took to prevent foreclosures was to beef up its staff of modification, workout and loss mitigation employees to 1,500, according to Rohr. The chief noted that National City loans accounted for more than 60 percent of PNC’s second-quarter charge offs and increase in non-performing assets. The heavy National City activity came despite massive impairments already taken at the unit. |
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