Posted on 08/20/2007 2:21:08 PM PDT by BurbankKarl
Capital One Financial Corp. plans to shut down its struggling GreenPoint mortgage unit, becoming the latest casualty in the mortgage meltdown.
Capital One bought GreenPoint in last year's $13.2 billion purchase of North Fork Bancorp, of Melville, N.Y. North Fork had earlier paid $6.3 billion for GreenPoint Financial Corp., then a large N.Y. savings-and-loan specializing in mortgages.
The unit specialized in so-called nonconforming loans, which do not meet the standards set by Fannie Mae and Freddie Mac, the government-sponsored providers of mortgage funds. GreenPoint specialized in "jumbo" loans above the $417,000 limit and Alt-A loans to home buyers who do not fully document their income or assets.
Citing great difficulty selling loans to the secondary market, Capital One officials said the bank will closing GreenPoint's 31 locations and eliminating 1,900 jobs immediately. The credit-card giant said the subsidiary would not make any more new mortgages but will fund those in the pipeline with locked-in rates.
(Excerpt) Read more at online.wsj.com ...
No loss. One does NOT want a Greenpoint mortgage anyway.
An auction of about 135 foreclosed homes in San Diego Saturday provided more sobering news for mortgage lenders. Ramsey Su, an investor and former real-estate broker who attended, calculated that the high bids for the homes averaged 67% of the prices they fetched when they were last sold, mostly in 2004 or 2005.
Much bigger and more serious problem is going to be the dimwits demanding your (increased) tax dollars to bail out all these never-shouldda-hadda-mortgage-anyway homeowners.
We have a Green Point Mortgage on our two family. I wonder what will happen, I’d guess it will be sold.
We have a Green Point Mortgage on our two family. I wonder what will happen, I’d guess it will be sold.
Greenpoint was a throwaway mortgage company if there ever was one.
Probably end up getting serviced by Capital One.
I actually rather liked them.
Yep. My refi was through Green Point (because, as a self-employed person my income was classified “undocumentable”) but it was sold within 8 months to Countrywide.
Got a nice, fixed 30 year loan, low rate, no PMI.
Sorry for the double post. The first one took 2 minutes to show up.
If there were a cheaper alternative to a mortgage I’d agree with you. However since everyone has to live, be it rent or mortgage, I’m all for getting more people into mortgages. Rent is for suckers.
Gotta be better than the idiots at Washington Mutual!
I didn’t hear much good about them, except back in the day when they financed doublewides.
but they wont be bailing out the homeowners, the homes will be lost to foreclosure, the bailout will be for the mortgage loaners.
I hate when that happens...when that happens. :)
Our original mtg. company was Trust Co. of NJ. After about 15 years it was sold to Northfork Bank, then about two years ago it was sold to to Green Point.
Oh bummerandstuff ..... no more home equity loans to buy big screen TVs ...... :P
LOL! Don’t forget to big SUV’s too. :)
Are there going to be any left in business to “bail out?”
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