Dis­cover Fi­nan­cial shuts mort­gage unit

Los Angeles Times - - BUSINESS BEAT - By E. Scott Reckard scott.reckard@latimes.com

Re­wards card spe­cial­ist Dis­cover Fi­nan­cial Ser­vices, which got into the mort­gage busi­ness via an ac­qui­si­tion in 2012, is clos­ing its home-lend­ing busi­ness and lay­ing off 460 em­ploy­ees, many of them in Irvine.

The River­woods, Ill., com­pany an­nounced Tues­day that it would fo­cus in­stead on a di­vi­sion of­fer­ing con­sumer bank­ing ser­vices, which it said is prof­itable and of­fers “greater op­por­tu­ni­ties for growth.”

“The [mort­gage] busi­ness is not pro­jected to meet our fi­nan­cial ex­pec­ta­tions,” said Car­los Minetti, Dis­cover’s pres­i­dent of con­sumer bank­ing.

Dis­cover bought the mort­gage op­er­a­tion three years ago from Char­lotte, N.C.-based Tree.com.

The Irvine lo­ca­tion has stopped ac­cept­ing ap­pli­ca­tions, the com­pany said, although it was to con­tinue pro­cess­ing and fund­ing loans al­ready in process.

Dis­cover said it plans to of­fer sev­er­ance pack­ages to af­fected em­ploy­ees. Three hun­dred and ninety work in Irvine, with the rest in Ken­tucky.

The com­pany said the home lend­ing unit, Dis­cover Home Loans Inc., would wind down busi­ness at its Louisville, Ky., of­fices in Au­gust.

Newspapers in English

Newspapers from USA

© PressReader. All rights reserved.