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Discover Financial Services will exit the residential mortgage-origination business that it acquired in 2012.
June 16 -
Just three years ago, CEO David Nelms heralded the purchase of LendingTree Loans as a milestone in Discover's evolution from a strict credit-card company to a broad-based consumer lender. Now he is hinting that it might exit the mortgage business.
February 13 -
In its latest regulatory hit, Meta Financial Group will have to reimburse customers of a high-interest loan program marketed to prepaid cardholders.
January 5
Guaranteed Rate has added 75 former Discover Home Loans employees as well as the Irvine, Calif., call center facility where they worked.
The move gives Guaranteed Rate a second call center. The other one is in its headquarters city of Chicago.
Discover Financial Services announced in June that
Discover, of Riverwoods, Ill., entered the mortgage business in June 2012 when
As part of the winding down of its operations, Discover gave Guaranteed Rate, as well as other mortgage companies, the opportunity to make presentations to its workers about possible employment prospects, said Scott Stephen, the president of the direct-to-consumer online division at Guaranteed Rate.
"They really wanted their people to be well tended to and well cared for and placed in a manner that they thought was best for those people," he said.
Guaranteed Rate sees the deal as a chance to add seasoned loan officers to its staff; the average loan officer at the Irvine location has 10 to 12 years of experience. "It was a just very, very talent-rich group of people that had built a nice culture and was available en masse," Stephen said.
A request for comment from Discover was not returned by press time.