Capital One slashes 286 more mortgage jobs

The new cuts are on top of the 950 jobs already slashed after the bank announced its exit from the mortgage business

Capital One slashes 286 more mortgage jobs

Capital One is planning to slash another 286 mortgage-related jobs as it exits its mortgage lending business. That’s in addition to the 950 employees the bank laid off in November.

The employees all work at the bank’s Plano, Texas, campus, according to the Dallas Business Journal. Capital One announced last year that it would exit the mortgage and home equity business as rising home prices and interest rates have squeezed the industry.

At the time, the bank’s head of financial services, Sanjiv Yajnik, told employees that the mortgage and home equity loan businesses were “structurally disadvantaged” and wouldn’t be profitable or competitive “for the forseeable future.”

The latest round of layoffs stems from Capital One’s May deal to sell a $17 billion home-loan portfolio to Credit Suisse subsidiary DLJ Mortgage Capital, the Dallas Business Journal reported.

“As always, our focus remains on supporting our associates during this time,” a Capital One spokesperson told the publication.

The new round of layoffs will be conducted in October, according to a notice Capital One filed with the Texas Workforce Commission.

 

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Capital One sells $17bn of mortgages to Credit Suisse unit