• Matt Joy

Capital One throws in the towel; Day 3 in NJ and I’ve gotten to the bottom of this “Garden State” ni


At the beginning of July, Capital One was the 12th largest mortgage lender among banks. Fast forward 4 months and as of Tuesday they will no longer originate mortgages and home equity loans. The President of financial services at Capital One used words like “structurally disadvantaged” and “challenging rate environment” when describing their departure from mortgage lending. Read the article here.

To me it’s always interesting when larger players exit the market as I feel it’s our innate duty as mortgage professionals to begin questioning why the heck we’re doing this? If a company like Capital One decides margins are too thin and the landscape too treacherous to continue originating… why did, we decide to start a new Wholesale Division? The reality is a departure like this “should” open the door for the mid-sized and smaller lenders to munch up some market share. Selfishly I enjoy it. I don’t enjoy that people will be out of a job, but if a broker now has the opportunity to win a loan that would otherwise been sent to Capital One... that’s a win… right?! What are your thoughts?

I’ve finally figured out why I haven’t seen any gardens during my time here in NJ… there aren’t any. According to the state of New Jersey, “There is no definitive explanation for New Jersey's nickname of "The Garden State.” Phew, I’m glad that’s settled.

Seriously though, I loved my time in NJ this week. We had a great dinner last night in Lambertville and I had the opportunity to see the sight where George Washington crossed the Delaware River. This was a significant turning point in our nation’s history where a fearless leader takes his troops through treacherous landscapes to fight a much larger (more competitive) opponent… get the connection here?

#CapitalOne #NewJersey #TheGardenState #Lambertville

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