Capital One gains by spurning mortgages

Interesting Dow Jones article yesterday interviewing the CFO of Capital One. They have deliberately spurned having mortgage debt on the books in favor of unsecured debt. They figure the unsecured debt is actually safer, as credit is extended on the basis of the borrower's ability to pay. Mortgages have been granted based on the security of the underlying asset, and when that falls in value, the holder is in trouble. Capital One has done relatively well in the credit crisis, and perhaps is a buy. Capital One Finance (COF) trades at about $46.