Corsair Bail-Out of National City -- Where's the Incentive to Invest in NE Ohio?

Submitted by Kevin Cronin on Tue, 04/22/2008 - 12:54.

Corsair, a private pot of money and investors that seems poised to bail out National City, is an interesting development, but if you're concerned about housing and local investment, where is the encouragement for the future in a bank that got into this mess, at least in part, through poor lending practices and weak management oversight on home lending?

Even before considering the mortgage lending crisis, at least by one measure, National City had a weak commitment to housing in Cleveland. While reviewing banking data for a troubled homeowner in a lawsuit, I was disappointed to learn that, despite qualifying to offer residents a mortgage assistance program of the Ohio Department of Development, National City participation, or even knowledge of the program, was limiting and harmed Cleveland residents. The state's Mortgage Credit Certificate program offers a credit equal to 20% of the mortgage payments, for first-time home buyers in Cleveland. However, the state data indicated that National City originated only eight Mortgage Credit Certificate loans since 2000, compared to the thousands offered by other banks who also qualified to develop loans for the state program. According to the data, Cuyahoga County represents 16% of the total number of loans and 15% of the total mortgage value of homes in the state's Mortgage Credit program. Other banks used the state program to help residents, but not National City.

Sadly, rather than promote Ohio's program for Cleveland residents, as they are required to do under the terms of the program, National City treated the housing program for Northeast Ohio as a promotional opportunity, perhaps more like the pancakes and Broadway plays we've read about, rather than a real development tool providing support for Cleveland residents and Cleveland neighborhoods.

The mortgage crisis is not some sort of external force, intruding to crush a banks' bottom line. Some housing and development tools could have made a difference for some residents, if only National City used them in an informed, committed way. At this tax time, what Cleveland resident wouldn't appreciate a tax credit for 20% of their mortgage payments? Unfortunately, when Cleveland residents looked for help on home mortgages through an important state program, National City looked away.


While we are all pleased by National City's support for theater and the arts, United Way and pancake cook-offs, residents of Northeast Ohio look to National City for essential housing loans and guidance and on that point, National City conduct has been, in this case, a very deep disappointment. National City needs to pay more attention to the activities of housing and lending, including the use of readily available development tools for Cleveland neighborhoods.

Support the arts? Sure, but National City can't ignore the job of promoting housing in Cleveland neighborhoods. So, if National City gets bailed out by an investor with no legal commitment to area housing (a bail-out partner that may stick around only four or five years), where is the incentive and push to improve practices? At least by the measure of this Ohio Development program, it's not "home grown" within National City.

Questions??

  So, if National City gets bailed out by an investor with no legal commitment to area housing (a bail-out partner that may stick around only four or five years), where is the incentive and push to improve practices?

Good question.  But, our local politicos don't want us to ask good questions. 

Funny how the poll on regional emergency response is getting some attention, though.  People are starting to pay attention to the naked emperor (s), here in NEO.  We have to stop pretending...and start doing.

buccaneers, profiteers

Do you think these guys are here to build, or to disassemble? What are corsairs, anyway, as in Barbary corsairs? Why did J.P. Morgan name his yacht Corsair III? Why do these guys think that's a cool name, too?

 

Be aware of what's cruising into town. They warned you, fair and square. They're here to take, not to give. Any other thoughts are superfluous.

corsair - "legal" piracy

from the Wikipedia : Corsair

They even refer to themselves as pirates. When education is on the wane, pirates can assume no one will look up their inside joke name, I guess.

Not to be confused with Corvair - unsave at any speed. Or is it?

privateers?

I see from your linked definition that "privateer" is another way to say things. Does that connote that they may take NCB private?

Sick NEO

A community so retarded to love a pirate like Ross for reigniting the LTV/ISG funeral fire, cum Mittal, should love seeing their National City treasure chest raped by a new fleet of pirates. Wait to see what locals get their rocks off on this deal... probably with HQ in some oddball place like Richfield. REAL NEO!

Disrupt IT