Capital One Financial Corporation (NYSE: COF - News) today announced that it will cease residential mortgage origination operations at its wholesale mortgage banking unit, GreenPoint Mortgage, effective immediately. Current conditions in the secondary mortgage markets create significant near-term profitability challenges, given the company's "originate and sell" business model. 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 for the foreseeable future. GreenPoint Mortgage will cease making new loan commitments immediately, however, it will continue to meet its contractual obligations to customers for loan commitments that are in the pipeline with rates locked.
Another one bites the dust!
We continue to use sources of funds that are stable
and have a history of solid performance. We are staying in tune with
the market, and can provide a safe haven for those borrowers affected by
recent company closures. Please call me if you would like more
information on where this whole thing is headed, or if you have a
customer orphaned by the recent company closures.
Kris Krajecki
American Mortgage Werks / Fox Valley Mortgage
630-347-6321
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