Discover Financial Services, a direct banking and payments company in the US, has decided to close home loan business to focus on its profitable direct banking products.
The mortgage origination business Discover Home Loans, which the firm acquired in 2012, will accept applications at its Louisville offices through 31 July 2015 and will continue operations until early August 2015.
Atlanta-based AmeriSave Mortgage Corporation will take over the processing of applications in Louisville from August 2015.
Discover will lay off about 460 employees, primarily in Irvine, and Louisville while offering them severance packages. However, the firm will continue to originate home equity loans through Discover Bank.
Discover president of consumer banking Carlos Minetti said: "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."