Greenpoint Mortgage Closed

August 20, 2007
Greenpoint Mortgage Closed

Greenpoint Mortgage was shut down today by parent Capital One Financial Corp., who said weak demand for residential home loans forced the company to shut the ailing mortgage lender.

Capital One announced that it would cease loan origination operations at Greenpoint Mortgage immediately, and according to initial reports, cut roughly 1,900 jobs.

Loans that are already in the pipeline and locked will continue to be processed and should ultimately fund as scheduled. It is unclear what will happen to loans far along in the process that haven’t been locked.

The news followed statements made by the VP of investor relations for Capital One last week, which sparked employee fear that the company was gearing up to close Greenpoint Mortgage.

Greenpoint Mortgage headquarters in Novato, California will be closed, along with 31 other branches in 19 states throughout the United States.

Greenpoint Mortgage specialized in Alt-A loans, offering programs for borrowers with low credit scores down to 620, as well as option-arms, second mortgages, jumbo loans, and other high-risk products.

Greenpoint’s Demise Started with Fewer Loan Programs

But earlier this year, Greenpoint narrowed their product offerings significantly, effectively sinking loan volume and forcing the closure of 13 branches and some 440 layoffs.

Amazingly, Capital One picked up the wholesale mortgage lender in their $13.2 billion North Fork Bancorp purchase just last December, with high hopes that Greenpoint would be a solid performer.

Unfortunately, the housing market turned at just the wrong time, quickly turning the lender’s profits into catastrophic losses.

Capital One had no intention of keeping mortgage loans on its balance sheet, and after winding up with more than $600 million in second mortgages on the books earlier this year, the company ultimately made the decision to shut the losing unit.

I received several e-mails from Greenpoint Mortgage employees this week who were concerned about their future at the company.

They mentioned that emergency meetings were held after the comments by their VP of investor relations last week, and that business was very slow, to the point where they felt it wouldn’t go on.

And it seems their worries were well-founded, as yet another lender closes its doors.

Greenpoint was the nation’s seventh largest originator of Alt-A mortgages, so this is pretty big news.

The shutdown will cost Capital One about $860 million, or $2.15 per share, cutting its 2007 earnings forecast to $5 a share from $7.15.

Capital One stock dropped $2.03, or 2.95%, to $66.72 in late trading, and an additional 22 cents in after-hours trading on the news.

Update: According to an internal Greenpoint e-mail, the commercial lending division is still open.


21 Comments

  1. Colin Robertson May 3, 2018 at 2:53 pm -

    Lorna,

    I believe Ocwen handles their loan servicing now…

  2. Lorna Kegler May 3, 2018 at 2:22 pm -

    In 2001 I took out a mortgage through Wells Fargo which my mortgage ended up with Greenpoint Mortgage Funding..I got a mortgage plus a line of credit loan.. went to remortgage and the the line of credit loan did not receive a release but both loans were paid off…only one release and no release for the line of credit…who do I contact have exhausted myself searching for help, cannot sell condo without this……..its considered a lien against me but it is paid…no release………..please help

  3. Sabrina Cassidy January 16, 2018 at 4:34 pm -

    I had a loan that originated with B of A housing that was sold to Greenpoint credit. I am not trying to sell the mobile home and the lien holder was never released nor did I ever receive the release of title. Whom can I contact now that they are no longer in business?

  4. Courtney Mustin January 16, 2018 at 8:42 am -

    Thank you for all of your research, you saved us a lot of time trying to track down liens from Greenpoint Mortgages!

  5. Colin Robertson January 10, 2018 at 10:28 am -

    Dennis,

    You may want to reach out to Ocwen Loan Servicing.

  6. Dennis Emmers January 10, 2018 at 9:39 am -

    I need a release of mortgage for a $35,000.00 second mortgage that was on a house I refinanced through Green Point Mortgage in 2006. The title agency says that it was never released making it senior to the Green Point Mortgages and must be paid before I can sell the house. Where can I go to find the information?

  7. Colin Robertson December 27, 2017 at 2:09 pm -

    Theresa,

    It sounds like the loan might still be on your credit report, and could now be hurting your credit scores because of his default? If court is saying you aren’t responsible, and you have something from the court in writing, perhaps that could help you, but Ditech may still be pursuing ALL borrowers on the loan until your ex actually removes you from it. Not a lawyer, but I could see why Ditech would hold all borrowers accountable until a borrower is actually removed from the loan, even if it’s not fair. For example, what if they remove your responsibility then the court changes its mind? It sounds like the issue is with your ex.

  8. Theresa H December 27, 2017 at 9:07 am -

    My ex and I purchased a mobile home in 10/1998 and our original contract was with Greenpoint. We have since divorced and he kept the home. Judge ordered him to refinance and remove me from loan and he didn’t and is now in contempt of court. My question is that I do NOT have a signed contract with Ditech and ex is in default of the loan; my contract was with Greenpoint. Any suggestions as to what I can do? Court says I’m not responsible but Ditech says I am.

  9. Colin Robertson December 20, 2017 at 9:46 am -

    Greentree was purchased by ditech, which is a Walter Investment Management Corp. company. Hope that helps.

  10. Woodland Trails Homes December 19, 2017 at 10:14 am -

    I am looking for the company that took over the greentree loans. I have an abandon home that was once their loan.
    If you can help I would really appreciate it.

    thanks

  11. Rick Losh October 15, 2017 at 10:50 am -

    I’m looking for a payoff letter for a Greenpoint mortgage originated in 2003 and paid off in 2011. The property address is 38734 Lanse Creuse, Harrison Twp., MI 48045. Can you help? Thank you for your support.

    Rick Losh
    586-914-4716

  12. Colin Robertson June 23, 2017 at 1:50 pm -

    Diana,

    Fidelity might be of better help than Greenpoint, seeing that the former is still in business.

  13. Diana DeWeese June 23, 2017 at 8:14 am -

    I was an employee and was let go because they were downsizing later to find out they closed out and I need to see where my 401k went to because it did not come to me and it was with Fidelity. any info would be helpful.

  14. raza &raza Inc January 24, 2017 at 7:58 pm -

    $328,469.00 was the equity the check we were supposed to receive from Greenpoint Mortgage in June 2007 which we have never received. we are making payment to Capital One, we want to know what happened to the check.
    please contact us before we hire attorney of the fraud, or inform FBI.

  15. jennyroque November 21, 2016 at 6:15 pm -

    I need a discharge of mortgage from 2007. How can i get this? I need Help ASAP Please . Building is about to sell need copy. Thanks

  16. Karen Bittke-Greenberg October 7, 2016 at 9:40 am -

    I need a signed in ink lien release letter from GreenPoint Credit as soon as possible. I never received a certificate of title when I paid off my mobile home in 2003. Please help!

  17. Linda Alles February 19, 2016 at 1:50 pm -

    I need divorce payoff proof from a loan I took out to pay my x-husband off in 2002. Who do I contact ? I need to show the proof to the court for a lawsuit I’m in.

    His new wife said I was “given” the house, which was not the case. I bought it. He is now deceased.

    I qualify to get some of his fire pension if I can produce the document. URGENT

  18. Colin Robertson January 5, 2016 at 9:25 am -

    Mary,

    If you can’t get in touch with Greenpoint you might want to check your county records via your local county website.

  19. mary January 5, 2016 at 6:57 am -

    How can i get my property tax info year 2004 from greenpoint mortgage.

  20. Colin Robertson May 18, 2015 at 6:09 pm -

    Linda,

    I believe Ocwen Loan Servicing, LLC acquired the servicing rights of Greenpoint’s mortgages, so you may want to contact Ocwen.

  21. Linda Gareau May 18, 2015 at 2:50 pm -

    Need to get some information about my green point loan on my mobile home in 2001-2004 Can u help?

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