Capital One closing mortgage unit

MCLEAN, Va. (AP) — Capital One Financial Corp. said Monday it will close its wholesale mortgage unit because of woes in the secondary mortgage markets, resulting in $860 million in charges in 2007.

The company, which said about 1,900 positions will be eliminated because of the closing of the unit, added that it will “cease residential mortgage origination” at the unit, called GreenPoint Mortgage, effective immediately.

“The reductions in demand and pricing in the secondary mortgage markets make it difficult to operate our wholesale mortgage banking business profitably,” said Gary Perlin, Capital One’s chief financial officer.

The company said GreenPoint will stop making new loan commitments, but it will continue to meet its contractual obligations to customers for loan commitments with locked rates that are already in the pipeline.