Mortgage Daily Logo

Lead King Moving Out of Originations

Mortgage News

The king of mortgage leads is getting out of the loan origination business. The buyer has been in the home-loan business before.

Discover Financial Services will acquire Home Loan Center from, a news release Friday said. The unit will fetch a $55.9 million net purchase price.

The deal is expected to close by the end of the year. shareholder approval is required before the transaction can consummate.

The unit, which does business as LendingTree Loans, originates, processes and funds residential loans in all states.

LendingTree Loans, itself, said late last year that it would acquire SurePoint Lending. In its first-quarter earnings report, the Charlotte, N.C.-based company confirmed the closing of the acquisition.

SurePoint reported more than $10 billion in originations since inception.

LendingTree reported $2.8 billion in production for 2010. First-quarter volume at LendingTree was 2,300 loans for $0.497 billion, tumbling from $850.4 billion three months earlier and $608.6 billion a year earlier. Chairman and Chief Executive Officer Doug Lebda explained in the statement that proceeds from the sale will go towards other lead verticals, while the move will allow a better focus on the core lead generation business. He noted that demand for the company’s leads is currently strong.

But at least some of the net proceeds will be eaten up by $40 million first-quarter loss at

For its part, Discover sees growth opportunities.

“The sale will add a home loan component to Discover’s direct-to-consumer banking products, which include credit cards, personal loans, private student loans, certificates of deposit, savings accounts and Roth individual retirement accounts,” according to the announcement.

But it’s not Discover’s first venture into mortgage lending.

Dean Witter Discover Novus Financial operated in the mortgage arena during the nineties.

Former Novus executive Michael Sawyer went on to head Alt-A lender Saxon Mortgage Services Inc., and guide it through its December 2006 acquisition by Morgan Stanley. His own exit from the business preceded the worst of the housing crash.

Another former Novus executive, Peter Schwartz, heads wholesale lending at Nationstar Mortgage LLC.

Related Posts

NewDay USA CEO Rob Posner Expects 10% Increase in 2019 Mortgage Loan Volume

There is No Such Thing as a Free House …

Over the past several years, those who service loans in the State of Washington(1) have seen a dramatic rise in the number of lawsuits in which delinquent borrowers seek to quiet title to their homes on the grounds that lenders are barred from foreclosing based on...

NewDay USA CEO Rob Posner Expects 10% Increase in 2019 Mortgage Loan Volume

The Mortgage Graveyard 2018 Archives

The Mortgage Graveyard 2018 Archives Failed, Struggling and Acquired Mortgage-Related Companies Non-Bank Closures 3 Bank Failures (FDIC) 0 Credit Union Failures 0 Total Mortgage-Related Failures 3  

NewDay USA CEO Rob Posner Expects 10% Increase in 2019 Mortgage Loan Volume

Sample E-Mail

Sample E-Mail   Covering the Real Estate Finance Since 1999  Mortgage Industry News free news content | view headlines online  Advertorial Text Ad This ad includes a linked bold headline of up to 50 characters and up to 100 words of text. The ad can be...

NewDay USA CEO Rob Posner Expects 10% Increase in 2019 Mortgage Loan Volume

Mortgage Servicer Portfolios

Mortgage Servicer Portfolios servicing news | mortgages outstanding statistics | foreclosure news   Servicing Portfolios as of 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | 2012 | 2011 | 2010 | 2009 | 2008 | 2007 | 2006 Residential Servicing Portfolios by Servicer...

Popular posts

How Long Does It Take to Refinance a Mortgage
How Long Does It Take to Refinance a Mortgage

So, you’re interested in refinancing your mortgage. Maybe you want some extra capital to do that home project you’ve always dreamed of, interest rates are nearing record lows, or you want to start consolidating debt. Regardless of the motivation behind the refinance,...

How Does Refinancing a Mortgage Work
How Does Refinancing a Mortgage Work

A home purchase is considered an investment, and a robust one at that. Savvy owners are constantly looking for new ways to reduce debt, save money, pay less in interest, and ultimately build equity. Refinancing is one way to leverage your investment and do just that....

What Does It Mean to Refinance Your Home
What Does It Mean to Refinance Your Home

You can think of refinancing your mortgage as a debt redo. Essentially, you’ll swap out the existing loan for a new one - ideally with better terms and conditions. Only this time it could help you save money on high mortgage payments, rather than just borrow it....

Setting up the Utilities in My New House
Setting up the Utilities in My New House

All the tedious, time-consuming home closing documents have been signed, sealed, and delivered. Your belongings are packed into what seems like a million boxes and you have a solid plan to haul all your existing furniture to the new place. Just as your boxes and...

When Is My First Mortgage Payment Due?
When Is My First Mortgage Payment Due?

Navigating your way through a brand new mortgage loan can be a difficult task, especially for first time homeowners. After handing over a large sum of money for the down payment and closing costs, it’s important to pay attention to the timing of your first mortgage...


Don’t worry, we don’t spam

calculate your monthly mortgage payment

Related Topics

Helpful Links

Daily mortgage rate trends

Best mortgage lenders

First-time homebuyers programs by state

Loan limits by state

Types of mortgages

APR vs interest rate

Understanding PMI