Discover Enters Mortgage Market Posted by AVCU on 11:08 AM

American Banker reports that Discover Financial Services (DFS) is entering the mortgage origination business, but the credit card lender isn't jumping into the deep end anytime soon. Discover has closed its deal to purchase the Home Loan Center from Tree.com and recently began originating mortgages. The credit card provider doesn't expect to see meaningful profits from its new home lending business immediately and intends to quickly sell the mortgages, including servicing rights, to the secondary market about every 15 days in order to avoid tying up any significant capital.


Read American Banker's report here.