Capital One to Wind Down Discover’s Home Equity Lending Business Following Acquisition Review

Capital One Financial Corporation (NYSE:COF) is one of the most undervalued NYSE stocks to buy now. On July 7, Capital One announced its decision to wind down Discover’s home equity lending business, as confirmed by a spokesperson for the McLean, Virginia-based bank. This move follows an extensive strategic business review conducted by Capital One after it acquired Discover.

The $35.3 billion purchase of Riverwoods, Illinois-based Discover was finalized in May this year, which marked the largest banking deal in the past 6 years and resulted in the creation of the largest credit card issuer in the US. After the acquisition, Capital One undertook a review of Discover Home Loans, which primarily focused on home equity loans and refinancing for existing homeowners.

Capital One to Wind Down Discover's Home Equity Lending Business Following Acquisition Review

A smiling face of a customer as they make a deposit at this company’s branch.

While Capital One will cease accepting new applications for home equity or mortgage refinance loans, as indicated by a notification on Discover’s home loans webpage, it will continue to process applications that are already in progress.

Capital One Financial Corporation (NYSE:COF) is the financial services holding company for the Capital One, National Association, which provides various financial products and services in the US, Canada, and the UK.

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Disclosure: None. This article is originally published at Insider Monkey.