Capital One Will Close Loan Unit

Source: Washington Post

Capital One Financial, the McLean-based financial services company, said it was closing a mortgage banking subsidiary and eliminating 1,900 jobs, joining a parade of firms that took steps yesterday to adjust to the widening credit crunch.

The string of announcements showed the depth of the trauma, as problems in the market for subprime, or risky, mortgages have spread and traditional sources of funding for lenders have dried up. Companies far and wide are going out of business or selling what they can to shore up their cash reserves. Partnership

Thornburg Mortgage, a New Mexico lender specializing in jumbo loans -- mortgages more than $417,000 -- to wealthy people with stellar credit, sold $20.5 billion in assets to reduce its debt.

"If there's a hiccup in the market for any reason, a company like Thornburg gets sucked into the vortex of the liquidity problem," said Steven Marks, a managing director at Fitch Ratings. "That's what's happening all around."

Read more: http://www.washingtonpost.com/wp-dyn/content/article/2007/08/20/AR2007082001252.html?hpid=topnews

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yikes...the blood bath continues

:(

is only the blood of unemployed American workers, Fed Ben will sleep well. He only has sleepless nights when hedge funds get a tummy ache.

approved credit card applications.

I worry about my son and daughter-in-law, though. They have decent credit and a sizeable down-payment from selling their house in AZ, but now they're having some difficulty finding a lender to stay in business long enough to finance building a new house in Seattle. Oh, well, I guess if worse comes to worst, I can fly up there and help them build a log cabin!


Tansy Gold

Looks like a certain chain of events is in motion.

my car is financed by them, and i have two cc's (low balances). they continually send me re-fi offers form my home too.

Just couldn't help it. ;-)

One semi-irresponsible credit card user could finance a good 2 or 3 employees for some time...

Wait, that's socialism. Sorry! :silly: