Huntington Bancshares, smarting from poor performance at its mortgage unit, is seeking to divest some or all of its out-of-state production network, according to market sources.

The Columbus, Ohio-based banking company has already sold its Massachusetts operations to Columbia National Mortgage, according to a Columbia spokeswoman.

A Huntington spokesman declined to comment,

At the beginning of this year, Huntington, which expects to lose $10 million in mortgage banking this year, operated in 15 states besides Ohio. The mortgage bank produced $1.5 billion in loans in the first half of the year.

Disappointing earnings in the third quarter were mostly laid at the feet of the mortgage banking unit.

Huntington Mortgage has seen an almost complete turnover in its executive suite this year as efforts were made to bring the unit closer to the parent and rein in questionable lending practices. A letter from the Comptroller's office earlier this year criticized Huntington over a loan originator who charged exorbitant fees.

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