Discover Financial Enters Mortgage Market With Deal For LendingTree.com
RIVERWOODS, Ill. – Card company Discover Financial Services agreed last week to acquire the mortgage loan business of Tree.com, formerly called LendingTree.com, adding a residential mortgage component to Discover's direct-to-consumer banking business.
Discover plans to originate eligible consumer mortgages to sell in secondary markets on a servicing-released basis.
The purchase price was $55.9 million.
Discover will use the business to originate mortgages and then sell them in the secondary market. The deal is expected to close by year end.