Capital One shares dropped 5% to $63.38. The company said it will immediately stop originating mortgages through its GreenPoint Mortgage business, which offers loans through brokers.
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 of which will go by the end of 2007, Capital One.
Good morning. The Wall Street Journal reports that layoffs have begun at
Countrywide Financial. The Journal doesn't say how many jobs have been trimmed,
and Countrywide has not confirmed the report.
CNBC.com: "The job cuts occurred in the company's Full Spectrum lending unit, according to the Journal, which handles many home mortgages known as "Alt-A" ... As of June 30, Full Spectrum's sales force numbered 6,785, according to a filing with the U.S. Securities and Exchange Commission, accounting for more than a third of Countrywide's roughly 18,100 loan origination staff."