Capital One Buys 40th Largest Residential Lender: CCB

Credit card giant Capital One Financial Corp., McLean, Va., has agreed to buy Chevy Chase Bank and its B.F. Saul Mortgage unit in a stock transaction valued at $520 million. According to figures compiled by the Quarterly Data Report, the Maryland-based BFSM is the nation's 40th largest lender and 34th largest servicer with $20 billion in housing receivables. No figures were immediately available on the mortgage unit of Capital One. A few years back the card company bought the Long Island-based North Fork Bank and its residential division, Greenpoint Mortgage, a large player in the 'alt-A' market. Capital One eventually closed the unit, booking a large loss on the transaction. BFSM, until recently, funded risky payment option ARMs both nationally and in the Washington, D.C. area where it is based.