Discover Home Loans will accept its final loan application at the end of July, leaving the company vulnerable to eager lenders waiting to buy what little remains of the credit card company’s foray into the mortgage lending business.
In a release, Discover said that it intends to focus on its “profitable banking products” instead, citing greater opportunities for growth in its other business lines.
“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.
As the company closes its doors, HousingWire sources sayGuaranteed Rate, loanDepot and Freedom Mortgage are vying to acquire the home loan business.
None of the companies will comment at time of publication, and it is unknown if the sales will be whole or in part.