PNC to process HEL\'s
By MortgageDaily.com staff
12/13/2005

First Horizon National Corp. and PNC have negotiated a production agreement for home equity mortgages originated online.

PNC Consumer Services will process home equity loans and lines-of-credit originated online by First Horizon, according to a loan origination servicing agreement announced Tuesday.

Under the agreement with the Memphis, Tenn.-based lender, PNC will provide business process outsourcing services for home equity products that stem from online inquiries made through First Horizon's site and Internet ads, parent PNC Financial Services Group Inc. announced.

First Horizon's site and online ads will direct home equity prospects to PNC's call center or online application. PNC will process the applications, underwrite and decision the loans, create the loan documentation packages and coordinate the loan closing with applicants, but the loans will be closed and underwritten in First Horizon's name and credit policy, according to the announcement.

PNC said a new, third-party lien protection insurance product will enable it to process the loans more quickly and deliver a faster response to the applicant.

The inked deal with First Horizon reportedly adds to PNC's list of loan origination and/or servicing relationships with several national financial services companies, including ABN AMRO Mortgage Group and E*Trade Bank.

The business outsource provider was created six years ago by PNC Bank, which recently reentered the mortgage business with PNC Mortgage, a joint venture with Wells Fargo Home Mortgage through which plans to hire 125 loan-originating employees by year-end 2006.

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