What’s in your wallet? Not a paycheck if you work for GreenPoint Mortgage which is part of Capital One. The next time you see their commercial you might think of these people instead. Capital One Financial said late Monday that it is closing its wholesale mortgage business and cutting 1,900 jobs as the credit card giant loses confidence in the profitability of originating home loans, then selling them in secondary markets. The company said it will immediately stop originating mortgages through its GreenPoint Mortgage business, which offers loans through brokers.
Little known to the general public was a mention by Capital One that it would get out of the credit card business. That was about two years ago. Mortgages must have looked better back then. What they were actually trying to do was change their somewhat-predatory credit card image. The company also said it will close GreenPoint’s California-based headquarters along with 31 locations across 19 states. That will mean the elimination of roughly 1,900 jobs, most by the end of 2007, Capital One said.
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