Discover Financial Services is closing its mortgage-origination business and will offer severance packages to about 460 employees.
The closure will result in a charge of about 4 cents a share, the Riverwoods, Illinois-based lender said Tuesday in a statement. Atlanta-based AmeriSave Mortgage Corp. will handle applications filed after early August, and plans to offer jobs to about 125 Discover employees, according to the statement.
"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," Carlos Minetti, Discover's president of consumer banking, said in the statement.
