Capital One to lay off 26 in Melville as it exits businesses

Capital One is laying off 26 employees on Long Island as part of a much larger layoff tied to the financial services company’s decision to exit the mortgage and home equity origination business.

Most of the Melville layoffs will occur in February, with the final layoffs taking place on or about March 7, according to a state regulatory filing posted Thursday.

The bank said a challenging interest rate environment and competition has made it difficult for that line of business at Capital One to be both competitive and profitable.

Capital One added it would continue to service its existing and pending home loans and would continue to provide specialized multifamily financing to the real estate development and investment community.

McLean, Virginia-based Capital One is laying off about 1,100 employees nationwide, including 950 in Plano, Texas. About 900 of the lost jobs are tied to the bank’s exit of the mortgage business.

Capital One also said it was eliminating its customer contact center in the Texas town because overall call volume had dropped as customers turn to branches, mobile tools or other contact centers for help.