RIVERWOODS, Ill.--(BUSINESS WIRE)--Jun. 16, 2015--
Discover Financial Services (NYSE: DFS) today announced that it is
closing the mortgage origination business it acquired in 2012 to focus
on its profitable direct banking products for which the company sees
greater opportunities for growth.
"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.
Discover Home Loans, Inc. will accept applications at its Louisville,
Ken., offices through July 31. Business operations will continue there
until early August, when Atlanta-based AmeriSave Mortgage Corporation is
expected to finish processing the remaining applications. AmeriSave
plans to establish an office in Louisville and offer jobs to
approximately 125 Discover employees. At Discover’s Irvine, Calif.,
location, the business will stop accepting applications as of today and
will continue processing and funding loans already in process.
In all, Discover plans to offer severance packages to about 460
employees, primarily in Irvine, and Louisville.
Charges related to exiting the business are expected to be approximately
$0.04 per share.
Discover will continue to originate home equity loans through Discover
Bank.
About Discover
Discover Financial Services (NYSE: DFS) is a direct banking and payment
services company with one of the most recognized brands in U.S.
financial services. Since its inception in 1986, the company has become
one of the largest card issuers in the United States. The company issues
the Discover card, America's cash rewards pioneer, and offers private
student loans, personal loans, home equity loans, checking and savings
accounts, certificates of deposit and money market accounts through its
direct banking business. It operates the Discover Network, with millions
of merchant and cash access locations; PULSE, one of the nation's
leading ATM/debit networks; and Diners Club International, a global
payments network with acceptance in more than 185 countries and
territories. For more information, visit www.discover.com/company.
View source version on businesswire.com: http://www.businesswire.com/news/home/20150616006652/en/
Source: Discover Financial Services
Discover
Jon Drummond, 224-405-1888
jondrummond@discover.com