Revises 2007 EPS guidance down by $2.15 per overlap;expects 2007 EPS of approximately $5.00 per shareAugust 20. 2007: 04:30 PM ESTMCLEAN. Va.. Aug. 20 /PRNewswire-FirstCall/ -- Capital One Financial Corporation today announced that it ordain cease residential owe origination operations at its wholesale owe banking unit. GreenPoint owe effective immediately. Current conditions in the secondary mortgage markets act significant near-term profitability challenges given the company's "become and change" business copy. Further recent and continuing developments in the owe markets decrease the long- term outlook for profitability in the business as the affiliate expects markets for prime non-conforming mortgage products are likely to be challenged for the foreseeable future. GreenPoint Mortgage ordain cease making new give commitments immediately however it ordain act to cater its contractual obligations to customers for loan commitments that are in the pipeline with rates locked. The company estimated that the be after-tax charge associated with this closure will be approximately $860 million or $2.15 per overlap the vast majority of which is expected to be incurred in 2007. Approximately $650 million of these expenses prove from the non-cash write-down of goodwill associated with the acquisition of GreenPoint Mortgage as move of the North lift Bancorporation in December 2006. The remaining $210 million of after-tax charges includes approximately $100 million in after-tax restructuring charges associated with severance benefits and facilities end and approximately $110 million after-tax valuation adjustments related to ongoing operations in the third quarter. As a result of the expected charges the affiliate is revising 2007 earnings guidance drink by $2.15 per overlap (diluted). The affiliate now expects 2007 earnings of approximately $5.00 per overlap (diluted). Without the charges related to the mortgage banking business the company would undergo maintained its existing earnings guidance. Capital One's other businesses remain on a solid trajectory with revenue growth and credit performance in line with expectations."The reductions in demand and pricing in the secondary owe markets make it difficult to operate our wholesale owe banking business profitably," said Gary Perlin. Capital One's Chief Financial Officer. "Beyond that. Capital One's other businesses are supported by ample liquidity and funding including deep access to deposits a "have" of subordinated ascribe card funding in place that allows approximately $9 billion of AAA credit card funding going forward and a $25 billion portfolio of highly liquid securities."GreenPoint owe became a subsidiary of Capital One in December 2006 as move of the company's acquisition of North Fork Bancorporation. GreenPoint's focus had long been the prime non-conforming and near-prime markets especially the Alt-A mortgage sector. Capital One domiciliate Loans based in Overland lay. KS and Capital One N. A. including its 725 local retail bank grow locations in New York. New Jersey. Connecticut. Texas and Louisiana are not directly affected by this decision. Capital One intends to act to become and change owe loans through Home Loans and its bank branches where it has direct interactions with customers rather than brokers which provides greater control of the underwriting and origination affect. Capital One ordain bear a $12.5 billion owe portfolio the vast majority of which was held-for- investment (HFI) by Hibernia and North lift Banks at the measure of their acquisition by Capital One in 2005 and 2006. These loans continue to demonstrate solid credit performance and generally be of first liens with relatively low loan-to-value ratios. The portfolio also includes approximately $680 million of back up lien mortgages originated by GreenPoint owe in late 2006 and early 2007. In addition to the HFI portfolio. Capital One will bear exposure to GreenPoint Mortgage's held-for- sale (HFS) owe portfolio with $2.6 billion outstandings the majority of which is committed for sale under forward flow agreements. The affiliate also will bear exposure to future repurchases of past GreenPoint production to meet representation and warranty claims. With the addition of the estimated $110 million after-tax valuation adjustments referenced above. Capital One believes that it has adequately reflected the assay associated with these remaining exposures. As part of this decision the affiliate ordain close GreenPoint's California- based headquarters along with 31 locations across 19 states. The change will result in the elimination of approximately 1,900 positions with the vast majority of these positions being eliminated by the end of the year. Impacted associates will acquire career transition services including one- on-one counseling and go seminars. All full-time associates ordain be eligible for severance packages and will acquire outplacement and retraining assistance."Despite the difficult force of this decision on GreenPoint and its associates. Capital One remains a strong diversified institution as we act to focus on our core out banking and lending businesses," said Capital One's head and CEO Richard D. Fairbank. Forward-looking statementsThe affiliate cautions that its current expectations in this channel and in its Form 8-K dated August 20. 2007 regarding its ongoing costs and financial risks the accounting charges and overall benefits associated with the decision to discontinue certain mortgage operations and the company's plans objectives expectations intentions and guidance on 2007 financial performance are forward-looking statements and actual results could differ materially from current expectations due to a be of factors including: the success timeliness and financial force of the decision to cease certain mortgage operations including financial charges and costs; continued intense competition from numerous providers of products and services that compete with Capital One's businesses; changes in our add up accounts and balances and the growth rate and composition thereof; the success of the company's marketing efforts; command economic conditions affecting interest rates and consumer income spending and savings which may alter consumer bankruptcies defaults charge-offs and fasten activity; economic conditions in the mortgage industry and in the secondary mortgage markets specifically; and the company's ability to kill on its strategic and operational plans. About Capital OneHeadquartered in McLean. Virginia. Capital One Financial Corporation (http://www capitalone com) is a financial holding affiliate with 725 locations in New York. New Jersey. Connecticut. Texas and Louisiana. Its principal subsidiaries. Capital One tip. Capital One Auto Finance. Inc. and Capital One. N. A. furnish a broad spectrum of financial products and services to consumers small businesses and commercial clients. Capital One's subsidiaries collectively had $85.7 billion in deposits and $144.2 billion in managed loans outstanding as of June 30. 2007. Capital One a Fortune 500 company trades on the New York have Exchange under the symbol "COF" and is included in the S&P 100 inde
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