Capital One Financial Corp. (COF) is hanging its hat on two business units.

The Virginia-based lender will stop issuing mortgage and home equity loans as interest rates become increasingly challenging, loan growth slows and competition strengthens, a company spokesperson confirmed to TheStreet.

Capital One will lay off 900 employees as a result of shedding the mortgage and home equity loans business units. The job cuts will affect associates working in Plano, Texas; St. Cloud, Minnesota; and Melville, New York.

Interest rates had been at historic lows, but as they increase, borrowing becomes more expensive. That's stirred trouble for Capital One. 

"Home lending is a complex and highly competitive business," the spokesperson said. "It is a crowded field with multiple players and borrowers have a broad range of options. Given the challenging rate environment in this space, we are structurally disadvantaged and we are not in a position to be both competitive and profitable."

Capital One will continue to service existing home loans portfolios, the spokesperson added.

Capital One stock dipped 0.8% to $89.29 in early afternoon trading Wednesday.

More of What's Trending on TheStreet:

More from Stocks

News From Starbucks and General Electric Leaves Their Investors Up in Arms

News From Starbucks and General Electric Leaves Their Investors Up in Arms

Facebook Messenger Could Bring in Billions of Dollars -- Here's How

Facebook Messenger Could Bring in Billions of Dollars -- Here's How

How to Invest in Cannabis - In Its Many Forms

How to Invest in Cannabis - In Its Many Forms

5 Stocks That Are Screaming Buys Right Now

5 Stocks That Are Screaming Buys Right Now

Tesla's Battery Tech Is Unrivaled

Tesla's Battery Tech Is Unrivaled