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National City Corp., one of the nation’s largest financial holding companies, is no longer providing indirect retail financing for RV and marine equipment loans.
However, the Cleveland, Ohio-based company is continuing to provide direct financing for consumers as well as dealer floorplan financing.
Indirect financing occurs when the loan is originated by the dealership and is subsequently assigned to a financial institution. Direct financing is when a consumer obtains a loan directly from a financial institution.
“National City continually reviews its business strategies to help ensure they support long-term sustainable revenue growth,” company spokesman Bill Eiler told RV Business in a written statement. “As part of this review, and in the face of changing business and market dynamics, National City has reached the decision to no longer originate new indirect retail recreation finance loans.”
Eiler declined to say what percentage of National City’s business was comprised of indirect RV or marine loans, which the company stopped providing as of May 25. But he was careful to note that the company is not pulling out of the RV sector.
“National City will continue to manage the existing indirect retail marine and RV portfolios, continue to finance boats and RVs on a direct basis through the National City branch system, and will remain in the business of providing floorplan financing to marine and RV dealers in the company’s seven-state footprint,” he said.
National City Corp. operates through an extensive banking network primarily in Ohio, Illinois, Indiana, Kentucky, Michigan, Missouri and Pennsylvania, and also serves customers in selected markets nationally. Its core businesses include commercial and retail banking, mortgage financing and servicing, consumer finance and asset management.
The company reported net income of $473 million for the second quarter, compared to $625 million a year earlier, a decline of 25%.