Capital One Financial Corp. agreed as part of its purchase of ING Direct USA to originate loans insured by the Federal Housing Administration to borrowers with low credit scores. But five months after giving verbal assurances to the Federal Reserve and consumer groups that it would accept FHA applications with minimum FICO scores of 580, Capital One still is not originating such loans.

Tatiana Stead, a Capital One spokeswoman, told American Banker/National Mortgage News that the McLean, Va., bank is in the process of "developing the infrastructure to make these loans." Capital One is on track to have systems in place at the end of the first quarter, she says.

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