E-Trade Financial (ETFC) said it decided to exit the retail mortgage origination business, its last remaining loan origination channel, according to a Securities and Exchange Commission filing late Friday. The company said it will partner with a third party company to provide customers access to real estate loans after it exits the business. E-Trade said in the filing it originated about $116 million in one- to four-family loans through the business during the three months ended March 31.
The market seemed to like this move, as the stock is up nearly 5% on Monday's mid morning session. E*Trade has made a smart decision based on their recent mortgage history.