Greenpoint Mortgage Out of Busniess?

Details are shady. But a customer of mine just reported that the lender is no longer funding loans. I will post more when I know more.

UPDATE!

It’s official according to Bloomberg.com report

“They said, ‘Let’s just cut our losses now and get out,’ ” said Thomas Brown, chief executive officer at Second Curve Capital LLC in New York, which owned 1 million shares of Capital One on June 30. `Certainly the company had been getting a lot of questions about that business.’

GreenPoint focused on “Alt-A” lending, an alternative for people with good credit records who don’t meet the standards for prime mortgages. Investors who buy those home loans stopped bidding this year as concern about rising defaults grew, pushing Alt-A lenders including American Home Mortgage Investment Corp. and HomeBanc Corp. into bankruptcy this month.

‘The market disruption is too great to continue with GreenPoint’s originate-and-sell business model,’ Capital One Chief Executive Officer Richard Fairbank told workers in a memo. He said he had hoped GreenPoint would be “a growth platform.”

I think its a shame that Greenpoint’s keepers have decided to close shop. They were a good business. It’s a shame that Capital One didn’t think so.