Capital One Financial Corp. has announced more than 900 layoffs in its departure from the home loan and home equity industries.
According a Dallas Morning News report
, the company’s closure of its mortgage business will result in the termination of 750 jobs in its Plano, Texas, operations and the loss of 155 employees in its centers in St. Cloud, Minn., and Melville, N.Y. The McLean, Va.-based company will continue the servicing of pending and existing residential mortgages, but will cease originating new loans.
Sanjiv Yajnik, President of Financial Services for Capital One, sent an e-mail to employees yesterday lamenting that the mortgage and home equity "businesses are in a structurally disadvantaged position, given the challenging rate environment and marketplace." The company will instead devote more attention to its auto lending business, which Yajnik forecast as having "an incredible future," along with its credit card and retail banking businesses.