The McLean, Va. based company is making the move as lenders
continue to struggle through a credit crunch in the nation's
Capital One says it will shut down GreenPoint Mortgage and
eliminate most of the jobs by the end of year. The company also
will close 31 GreenPoint locations in 19 states and stop
residential mortgage origination effective immediately.
The company will honor commitments to customers with locked
rates who have loans already in the pipeline.
California-based GreenPoint specializes in no-documentation and
"Alternative A" mortgage loans. Those are geared for people with
slightly better credit than subprime borrowers with weak credit.
In his memo, Capital One's chairman and chief executive officer
Richard Fairbank says that market has seen a significant reduction
in liquidity and continuing volatility.