Discover Closes Mortgage Sector in Favor of Direct Banking
Discover Financial has decided to close its mortgage sector to focus on its direct banking products. The transition will leave approximately 460 employees without work, though Discover will provide them with a severance package.
Discover Home Loans was established in 2012 after a business acquisition, and it will continue to operate under a new owner – AmeriSave Mortgage Company. Discover will be accepting loan applications until July 31, and the Louisville headquarters will be in operations through early August. AmeriSave will finish processing the remaining applications at that time.
AmeriSave is based out of Atlanta, but the company plans to establish an office in Louisville. This may open jobs for 125 laid-off Discover mortgage employees.
Discover will continue to extend home equity loans to qualified applicants after the switch.
Discover has been very active with its credit card sector over the past few months. Just two weeks ago, the company announced that new customers of Discover credit cards who get approved in June or July will earn double rewards points at the end of their first year with the card. The promotion is valid on the Discover It card, the Discover It Chrome, the Discover It card with an 18-month balance transfer offer, the Discover It for Students and the Discover It Chrome for Students. It is not available on Discover It Miles because that card already doubles rewards points at the end of the first year.
Earlier this year, Discover made another major transition in its practices by introducing the “Freeze It” feature on its cards. This allows users to turn their card off and on through a secure online dashboard in case the card ever get lost or stolen.