The residential mortgage market has a new player: Discover Financial Services has announced the official launch of Discover Home Loans, which will offer prime variable- and fixed-rate conventional and Federal Housing Administration loans.
According to the company, the new mortgage origination business will complement Discover's existing line of savings, lending and other direct-banking products. The new business will also offer a ‘Welcome Back Bonus’ credit of up to $2,000 toward closing costs for return customers who choose Discover for future home-buying and refinancing needs, as well as a $1,000 credit toward closing costs if loans are not closed as originally scheduled.
‘We are committed to setting a new standard of excellence in the market for home loans – just as we have done in credit cards, deposit products, private student loans and personal loans,’ says Carlos Minetti, president of consumer banking and operations for Discover. ‘Home loans are a product our customers have been asking for, and our approach offers the simplicity, transparency and personalized service for which Discover is known.’
Discover came into the mortgage business via its purchase last year of all of the operating and related assets of Home Loan Center, a subsidiary of Tree.com Inc., for $55.9 million. Discover plans to originate mortgages to sell in secondary markets on a servicing-released basis. The mortgage business is licensed in 45 states and the District of Columbia.