S&P: Capital One unaffected

Standard & Poor's said its rating on Capital One Financial Corp. (BBB+/positive) remains unchanged following the company's announcement that it will cease residential mortgage origination operations at its wholesale mortgage banking unit, GreenPoint Mortgage, effective immediately.

The agency noted that the recent turmoil in the mortgage market and the resultant pricing pressures resulted in profitability pressures at GreenPoint.

Capital One also believes that profitability would be pressured longer term and concluded that the best option was to exit the business, according to S&P, which added that the decision will result in an $860 million charge.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.