GreenPoint, #7 Alt-A Funder, Shut

Credit card giant Capital One shocked the market Monday afternoon, closing GreenPoint Mortgage, Novato, Calif. -- the nation's seven largest originator of alternative-A credit mortgages -- completely.In total, 31 offices in 19 states will be shuttered, resulting in job losses for 1,900. Capital One of McLean, Va., bought GreenPoint and its parent, North Fork Bank, in December. The shutdown of GreenPoint -- a pioneer in nonconforming mortgages -- will cost it $860 million in related charges. In a statement the bank said, "Current conditions in the secondary mortgage markets create significant near-term profitability challenges, given the company's 'originate and sell' business model. Further, recent and continuing developments in the mortgage markets reduce the long- term outlook for profitability in the business, as the company expects markets for prime, nonconforming mortgage products are likely to remain challenged for the foreseeable future." The company also had cited secondary market woes in an earlier wave of GreenPoint layoffs. Besides being a top ranked alt-A funder, GreenPoint also ranked 20 overall, according to figures compiled by the Quarterly Data Report.