Cap One Mortgage Segment Takes 1Q Loss

The mortgage banking sub-segment of Capital One Financial Corp., McLean, Va., incurred a $12.6 million net loss in the first quarter, Capital One has reported.The company cited pressures in the secondary capital markets for loans associated with nonconforming prime mortgage loans (including alternative-A loans), which it said resulted in a $19 million addition to its reserve related to representations and warranties and a $21 million warehouse valuation adjustment. The sub-segment -- which falls under Capital One's National Lending segment and represents the legacy business of GreenPoint Mortgage -- originated $6.8 billion in loans during the first quarter, down $2.5 billion from originations in the fourth quarter and down $1.0 billion from those of a year earlier, Capital One reported. (Capital One acquired North Fork Bank, the parent company of GreenPoint, in December 2006.) Overall, the company reported net income of $675.1 million ($1.62 per share) for the first quarter, compared with $883.3 million ($2.86 per share) in the first quarter of 2006. Capital One can be found online at http://www.capitalone.com.