Capital One to shut down Discover home equity lending business

Capital One Financial in McLean, Va., is shutting down Discover’s home equity lending business.

A notification at the top of the Discover Home Loans website states that the business “is no longer accepting applications for new home equity or mortgage refinance loans, although we will continue to process applications that are in progress.”

The message directs people with pending applications or current loans to a page with contact information.

Capital One acquired Discover earlier this year.

“We conducted an extensive strategic business review of Discover’s home equity and refinance loan business to better understand its position and potential as part of Capital One’s business portfolio,” a Capital One representative told Banking Dive. “In late June, we announced the difficult decision to exit this business. We are focused on supporting our customers and associates through this transition.”