Discover Financial Services, Riverwoods, Ill., has finally closed on its purchase of LendingTree Loans, also known as Home Loan Center, from Charlotte, N.C.-based Tree.com for a total purchase price of $46 million. An additional $10 million of the purchase price is due on the first anniversary of the purchase, subject to certain conditions.
Approximately $17 million is being held in escrow pending the discharge of certain contingent liabilities not assumed by Discover related to loans previously sold to secondary market investors.
LendingTree will continue to provide certain marketing-related services to Discover in connection with the mortgage origination business for approximately 17 months, and Discover has also agreed to be a participating lender in the LendingTree Network.
Home Loan Center is now operating under the name Discover Home Loans. “We are committed to setting a new standard of excellence in the market for home loans—just as we have done in credit cards, deposit products, private student loans and personal loans,” said Carlos Minetti, president of consumer banking and operations for Discover.
“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.”
Among the things Discover is offering loan applicants is a “Welcome Back Bonus” credit of up to $2,000 toward closing costs for return customers who choose the company for their future home buying and refinancing needs.”