Industry News

Capital One closing GreenPoint, laying off 1,900

Thornburg Mortgage losing $930 million on MBS fire sale

Capital One Financial Corp. said Monday it's shutting down its wholesale mortgage banking unit, GreenPoint Mortgage, but will meet contractual obligations to customers with loan commitments in the pipeline with rates locked. Capital One is closing GreenPoint's California-based headquarters and 31 locations across 19 states, eliminating 1,900 positions, most by the end of the year. "The reductions in demand and pricing in the secondary mortgage markets make it difficult to operate our wholesale mortgage banking business profitably," said Capital One Chief Financial Officer Gary Perlin, in a statement. Perlin said Capital One's other businesses are "supported by ample liquidity and funding," including deposits and a stockpile of subordinated credit card funding. Capital One, which acquired GreenPoint Mortgage in December 2006 as part of its acquisition of North Fork Bancorporation, said it will take an $860 million after-tax charge to close GreenPoint, and is revising its ...