PNC Financial Services plans to close Capstone Realty Advisors, its commercial mortgage banking unit, as part of an ongoing reorganization plan, National Mortgage News has learned.
According toFred Solomon, a spokesman for PNC, the decision to close Capstone was due in part to the current economic landscape.
"We determined Capstone did not align with PNC's core business model," he said. Capstone's existing loans in its portfolio will be reassigned to various departments and subsidiary companies of PNC that are the most well-equipped to handle the loans. Solomon could not specify when the closing will go into effect.
About a month ago, PNC decided to pull the plug on the warehouse lending operation of National City, a troubled bank it bought at yearend.