Capital One Financial Corp. (COF) Closes Wholesale Mortgage Business
Capital One Financial Corp. said Monday it will cut 1,900 jobs and shutter its wholesale mortgage banking business, a move that comes as lenders continue to struggle in the nation's housing and mortgage markets.
Capital One said it will shut down GreenPoint Mortgage and eliminate most of the jobs by the end of year. The McLean, Va.-based company will close 31 GreenPoint locations in 19 states and "cease residential mortgage origination" effective immediately but said it will honor commitments to customers with locked rates who have loans already in the pipeline.
The decision to close GreenPoint will hit Capital One with an $860 million charge, or $2.15 per share, the vast majority of which will come in 2007. The company lowered its 2007 earnings guidance by 14 percent to $5 per share.
Capital One said it will shut down GreenPoint Mortgage and eliminate most of the jobs by the end of year. The McLean, Va.-based company will close 31 GreenPoint locations in 19 states and "cease residential mortgage origination" effective immediately but said it will honor commitments to customers with locked rates who have loans already in the pipeline.
The decision to close GreenPoint will hit Capital One with an $860 million charge, or $2.15 per share, the vast majority of which will come in 2007. The company lowered its 2007 earnings guidance by 14 percent to $5 per share.
Labels: Capital One Financial Corp., COF, GreenPoint Mortgage
posted by Stock Administrator @ 11:14 PM
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