Capital One Winds Down Discover Home Equity Lending Business

Capital One Financial Corporation has decided to shut down the home equity lending and mortgage refinance business it acquired through its $35.3 billion purchase of Discover Financial Services finalized in May 2025. Following an extensive strategic business review, Capital One announced the decision to exit this segment while continuing to service existing loans and applications already in progress. The acquisition, which created the largest credit card issuer in the U.S., also gave Capital One control over Discover's payments network, enhancing its position in the credit card market. While the number of employees affected by the shutdown has not been disclosed, most are expected to transition to other roles or assist with winding down the business, with some job cuts possible. Capital One remains committed to investing in Discover’s strengths, particularly in its credit card and payments businesses, and plans to assess strategic options for the home loans portfolio. The acquisition followed intense regulatory scrutiny and included a community benefits plan and a $100 million penalty settlement related to past Discover interchange fee overcharges.