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.

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.