National City, a major HELOC lender, is now on a form of probation with federal banking regulators. Reuters reports:

“The banking subsidiary of National City Corp has signed a confidential memorandum of understanding with U.S. regulators, promising to address its rising amount of bad loans, a source familiar with the matter said on Monday.

The memorandum signed by the bank and the Office of the Comptroller of the Currency requires the bank to improve what examiners see as potential problem areas.”

If National City does not improve, it may become subject to formal sanctions.

See Also:

The Best (and Worst) HELOC Lenders Ranked

Answers to Common HELOC Questions

Tags | Heloc, HELOC Lenders, home equtiy line of credit, lenders, National City