KeyCorp, which largely abandoned the mortgage business two years ago as profits lagged, is seeking to jump in again in a big way-this time as a lender to people with tarnished credit records.

The Cleveland-based banking company has targeted as acquisition candidates Option One Mortgage, a unit of Fleet Financial Group, and Champion Mortgage Holdings Corp., investment bankers say. The two companies, which cater to homeowners with impaired credit, have both been put on the block in recent months.

Subscribe Now

Access to authoritative analysis and perspective and our data-driven report series.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.