The mortgage industry was shaken in November 2017, when Capital One announced that it would be moving out of the lending business and closing its Mortgage and Home Equity business. The move affected 950 people.
In an internal memo at that time, the bank had stated the decision to exit the business was a strategic one and had nothing to do with the team. “ I want to be clear that this decision was not made because of anything our Mortgage and Home Equity teams did or did not do. We had the right talent, right products, and the right customer experience. I am so very proud of what each person had done to help build these businesses,” Sanjiv Yajnik, President, Capital One, had written in the email.
The team has moved on since then and are finding new positions in the mortgage industry. On Tuesday, Citizen Bank [1] announced the appointment of Eric Schuppenhauer as President of its Home Mortgage Business, where he will lead the next stage of growth for Citizens Bank’s mortgage business.
At Capital One, Schuppenhauer was responsible for all aspects of the bank’s mortgage production and mortgage and home equity servicing, including regulatory communications and both industry and community advocacy. In this role, he developed an industry-leading direct mortgage offering, distinguished by digital capabilities that drove superior customer service, improved profitability, and best-in-class quality. During his tenure, he oversaw a strong platform while servicing $28 billion in mortgage and home equity loans.
At Citizens Bank, he will be responsible for managing mortgage sales, operations, strategy, secondary markets, and technology teams and will report to Brad Conner, Vice Chairman and Head of Consumer Banking at Citizens Bank.
“I am confident that Eric’s deep expertise will help us take our home lending business to the next level, further accelerating growth and enhancing our direct-to-consumer and digital capabilities,” said Conner.
In January 2018, 20 members of the former Consumer Direct Mortgage Team of Capital One, led by Rocky Stubbs found a new opportunity at Flagstar Bank. Stubbs, the former head of Consumer Direct and Digital Mortgage at Capital One is now SVP and Director of Consumer Lending at Flagstar Bank, where he and his team of 20 members, all former Capital One employees, are strengthening and scaling Flagstar’s digital platform.
“Capital One built a best-in-class digital platform, so we are excited about attracting this proven, high-caliber team in the direct-to-consumer space to Flagstar,” Kristy Fercho, President of Mortgage for Flagstar Bank had said while welcoming the team.