Capital One To Close Mortgage Unit

Another day, another sinking mortgage lender. Today’s victim is Capital One’s mortgage banking subsidiary. By closing the unit Capital One will be cutting 1,900 jobs. From MSN Money:

“Current conditions in the secondary mortgage markets create significant near-term profitability challenges,” Capital One said in a statement. “Further, recent and continuing developments in the mortgage markets reduce the long-term outlook for profitability in the business, as the company expects markets for prime, non-conforming mortgage products are likely to remain challenged.”

Later, gator.

Capital One closes mortgage biz [MSN Money]

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  1. Buran says:

    I heard about this on NPR last night. They bought this less than a year ago.

    Why do companies buy other companies just to shut them down? That makes no sense. It’s not like C1 isn’t big enough already.

  2. Cowboys_fan says:

    Looks like another 1900 mortgage payments will be missed next month.

  3. gibsonic says:

    @Cowboys_fan:
    ha, exactly.

    in other news… now’s a great time to get a steal on a 2nd (or 3rd) home with so many foreclosures flooding the market.

    i personally just want to sell my one and only home so I can move…this was really bad timing on my part. uuugh.

  4. emjsea says:

    That’s odd since I received a mailing from them just yesterday asking me to refinance my home with them. But I live in an apartment.

  5. B says:

    @emjsea: No wonder they’re going out of business.

  6. SaveMeJeebus says:

    The way I see it when I move and buy a house in 2 years, I should have a pretty good pick of low-priced houses. By that time, I am sure that a credit score of 800+ will be required to secure a non-ARM loan though.

  7. mscar says:

    I have this picture in my head of the vikings from the credit card branch ransacking their mortgage unit.

  8. ArtDonovansDrunkenLovechild says:

    Word on the street is the are winding down slowly with a skeleton staff. Loans in process are being completed, and they will not change the process to sell off the paper on the secondary market, since they are keeping the commercial side of the business. My guess is we may see a re-labeled Capital One Mortgage in a bit. Greenpoint was one of the good guys, a lot of decent people are out of work.

  9. Jaysyn was banned for: http://consumerist.com/5032912/the-subprime-meltdown-will-be-nothing-compared-to-the-prime-meltdown#c7042646 says:

    Couldn’t happen to a nicer financial institution. Sorry to sounds like an ass, but I truly hate C1.

  10. Buran says:

    @B: I get fliers like that too.

    My house was purchased by my grandparents in the 1950s and I have lived in it since my grandmother could no longer live alone (Grandpa died in ’82).

    It was paid off a long time ago. My parents and I own it free and clear.

    Refinance what, exactly?

  11. SirKeats says:

    I hate Cap1. While I’m sad to see so many people lose jobs… I’d not be saddened if the whole damned company went belly up.

  12. Berz says:

    @mscar:

    Thanks for the laugh, people around my cube are staring at me now.

  13. B says:

    @Buran: So do I, actually. I’ve been offered 10 grand guaranteed if I take out a loan on my house, which should work out great, since I rent.

  14. @emjsea: I never understood why that stuff gets mailed to apartment complexes. How hard is it to look up an address and find out it’s an apartment complex?

  15. gibsonic says:

    @Rectilinear Propagation:

    exactly…anytime “APT x” is in the address, that should raise a flag.