Discover to Close Mortgage Originations Division

Jun 16, 2015

Discover Financial Services has announced that it is closing the mortgage origination business it acquired in 2012 to focus on its direct banking products.

"The business is not projected to meet our financial expectations due to ongoing challenges to our home loans operating model, so we made the difficult decision to exit," said Carlos Minetti, president of consumer banking for Discover.

Discover Home Loans Inc. will accept applications at its Louisville, Ken., offices through July 31. Business operations will continue there until early August, when Atlanta-based AmeriSave Mortgage Corporation is expected to finish processing the remaining applications. AmeriSave plans to establish an office in Louisville and offer jobs to approximately 125 Discover employees. At Discover’s Irvine, Calif., location, the business will stop accepting applications as of June 16th and will continue processing and funding loans already in process.

In all, Discover plans to offer severance packages to about 460 employees, primarily in Irvine, and Louisville.

Discover will continue to originate home equity loans through Discover Bank.

About the author

NationalMortgageProfessional.com

Link copied

Published

Jun 16, 2015

Non-QM

A&D Mortgage Completes $427M Non-QM Securitization

Company says transaction highlights expansion in the Non-QM market, notes it expects to price more deals this year

A&D Mortgage, an issuer of non-QM residential mortgage-backed securities, has closed its second securitization this year, along with Atlas Merchant Capital and Imperial Fund. The $426.67 million transaction marks the 25th issued with A&D-originated collateral and...

People On The Move

Supreme Lending Lures Another Movement Mortgage Pro Into The Fold

‘Something just felt different’ at Supreme, says new Regional Manager Michael Nasserfar, who’ll expand company’s builder-focused efforts

Dallas-headquartered national mortgage lender, Supreme Lending, has brought mortgage industry veteran and top-producing LO, Michael Nasserfar, into its ranks as a regional manager, with a specialized focus on builder partnerships and new construction development. “With ov...