GreenPoint Mortgage will outsource its mortgage servicing, resulting in hundreds of layoffs.
The Capital One Financial Corp. subsidiary has decided to utilize a sub-servicer to service its shrinking mortgage portfolio, spokeswoman Julie Rakes told MortgageDaily.com in a statement.
GreenPoint halted all originations in August 2007. That move was expected to result in 1,900 layoffs in 31 locations and at the headquarters in Novato, Calif.
Rakes noted that with no new originations, the servicing portfolio continues to diminish.
As of June 30, GreenPoint's servicing portfolio was $38 billion, including $27 billion in loans serviced for investors other than Capital One, the spokeswoman explained.
As a result of the decision to exit servicing, Rakes said 220 positions will be eliminated by Dec. 31, 2008, at the earliest. The impacted employees are in Columbus, Ga.
"Capital One explored a number of options for this work and determined that outsourcing it will enable the company to effectively and efficiently manage the operations as the portfolio continues to diminish," Rakes stated.