Credit card company pushing home loans online may be a threat to originators

by 19 Jun 2013
Discover Financial is boosting their online efforts to sell its mortgage products.
Discover Home Loans recently introduced a “Mortgage Finder Tool” that gives potential customers mortgage options.

This may come as a threat to online mortgage originators. Craig Dodds, senior vice president of sales at Amerisave Mortgage, a 100% online retail lender, says that this is direct competition. 

On the one hand, consumer credit card companies have a step-up above some mortgage originators because they are familiar in name and they can leverage this to cross-sell to customers, he said.

On the other hand, other consumers may be turned-off by this type of technique, he added. 

Discover Home Loans began in mid-2012 and originated US 2bn in mortgages during the year. 
“Our goal is to become a market leader in direct home loan originations,” said TJ Freeborn, a mortgage professional for Discover Home Loans. 
“One of the ways we are going to accomplish that goal is by doing better than our competitors at helping customer navigate the complex process of obtaining a mortgage,” he added. 


Should CFPB have more supervision over credit agencies?