Mortgage Orb - Patrick Barnard - 08 November 2017
Capital One Financial Corp. is exiting the mortgage business, resulting in the elimination of more than 1,000 jobs.
Specifically, the company plans to cut 905 jobs at its offices in Plano, Texas; St. Cloud, Minnesota; and Melville, N.Y., according to a Bloomberg News report, citing an internal company memo.
Capital One also plans to eliminate about 200 jobs at a call center in an unrelated move, according to the report.
The company had about 50,400 employees as of the end of September, according to a regulatory filing.
“These businesses are in a structurally disadvantaged position, given the challenging rate environment and marketplace,” says Sanjiv Yajnik, president of financial services at Capital One, in the memo to employees. “These factors do not allow us to be both competitive and profitable for the foreseeable future.”
Capital One had about $20.6 billion worth of residential mortgage loans as of June 30, according to Bloomberg’s data. That made it the 12th largest mortgage lender among banks.
The company will continue to provide loans for affordable housing and multifamily financing to real estate developers and investors, according to the report.