Wholesale mortgage division shuts down permanently

Tuesday, August 21, 2007 at 2:57pm

A corporate wholesale mortgage division with offices in Tennessee is shutting its doors permanently.

GreenPoint Mortgage, Capital One Financial Corp.’s wholesale mortgage division, is set to immediately cease offering new loans, though existing loans will still be serviced. GreenPoint has offices in 19 states including Tennessee. About 1,900 jobs will be cut as a result of the closure.

"The reductions in demand and pricing in the secondary mortgage markets make it difficult to operate our wholesale mortgage banking business profitably,” said Gary Perlin, Capital One’s Chief Financial Officer, in a statement.

A spokesperson for GreenPoint did not immediately return calls for comment.

GreenPoint Mortgage became a subsidiary of Capital One in December 2006, as part of the company’s acquisition of North Fork Bancorporation. GreenPoint’s focus had long been the prime non-conforming and near-prime markets, especially the Alt-A mortgage sector.

Capital One Home Loans, based in Overland Park, Kan., and Capital One N.A., including its 725 local retail bank branch locations in New York, New Jersey, Connecticut, Texas and Louisiana, are not directly affected by this decision. Capital One intends to continue to originate and sell mortgage loans through Home Loans and its bank branches where it has direct interactions with customers, rather than brokers, which provides greater control of the underwriting and origination process.

Filed under: City Business
By: GMONEY on 12/31/69 at 6:00

We should ask them....."What's in YOUR wallet?"