MetLife Closes Mortgage-Origination Business
Posted by Ady Simion (Realtor and Public Notary)
MetLife Inc., the nation’s largest insurer, announced Tuesday it is getting out of the mortgage-origination business and that it will no longer be accepting new mortgage applications as it prepares to shutter its residential mortgage unit. However, the company says MetLife Home Loans will continue to offer reverse mortgages as well as service its current mortgage customers.
For any loan applications already in the pipeline, the company said it will continue to process those loans and expects most of the loans to close within 90 days.
In October, MetLife had said that excessive regulations in the banking industry was prompting the company to get out of the mortgage business. Last month, General Electric agreed to buy MetLife Bank for about $7.5 billion. However, MetLife was unable to find a buyer for its mortgage business.
The closing of the company’s home mortgage origination business is expected to cost MetLife at least $90 million, and 4,300 employees are expected to lose their jobs.
In 2010, MetLife was the 13 largest mortgage originator in the nation, issuing more than $22 billion in home loans.