Capital One announced Tuesday that they will close originations in home equity and mortgage businesses and close down a call center.
The financial service company offered the following statement regarding these closures:
"Home lending is a complex and highly competitive business. It is a crowded field with multiple players and borrowers have a broad range of options. We’re in a structurally disadvantaged position, given the challenging rate environment. We’re not in a position to be both competitive and profitable."
Capital One's retail bank in Plano will also close its customer contact center. Retail and Direct Bank customers will still be able to get service through other branches, mobile app and contact centers.
The company will continue to service existing and pending home loan customers, but no new ones will be written.
"These were two very difficult business decisions, that will result in a reduction of our Plano headcount by approximately 950 associates in the coming months," a spokesperson for Capital One said.
Associates can apply for other Capital One roles but if they don't qualify for a new position they will be eligible to receive a severance package, including retraining assistance and outplacement services.
"We continue to maintain a strong team of more than 5,000 associates on the Plano campus," according to Capital One. "The majority of them are a part of our Auto Finance business, while others are dedicated to supporting our Credit Card, Small Business Bank, Commercial Bank and Retail Bank businesses."