By Kristin Jones
Discover Financial Services (DFS) launched its home-loan
origination business as the lender continues its push beyond credit
cards.
Discover first disclosed its plans last year to originate
mortgages when it said that it was buying assets from Tree.com Inc.
(TREE), an online lending program. Discover, best known for its
credit cards, had laid out plans to originate mortgages that
conform to Freddie Mac (FMCC) and Fannie Mae (FNMA) standards and
sell the loans in the secondary market.
In March, the company said it planned to launch its online
mortgage business by mid-year.
"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," Carlos Minetti,
president of consumer banking and operations, said on Tuesday.
The company will offer prime variable- and fixed-rate loans, and
web access to documents and loan status will be provided on
www.discoverhomeloans.com.
The move into mortgages is in line with the lender's moves to
diversify its business, which is heavily dependent on credit-card
loans. Discover has also begun offering private student loans and
personal loans.
Discover has also pushed to become a full-service online bank,
with a wide array of financial products.
Shares closed Monday at $32.40 and were inactive premarket. The
stock is up 35% so far this year.
Write to Kristin Jones at kristin.jones@dowjones.com