MetLife to sell mortgage business, citing excessive regulation
MetLife Bank, a division of insurer MetLife Inc. ($43.28 0.71%), is selling the bank's mortgage business, citing uncertainty in the marketplace and a regulatory environment that requires excessive resources.
The company said devoting people and capital to handle the regulatory environment in the mortgage space "would divert these resources away from MetLife's primary focus on its global insurance and employee benefits businesses."
MetLife began originating mortgages through its MetLife Homes Loans division in 2008 and plans to continue writing reverse mortgages.
The bank will originate new home loans and service existing mortgages while it looks for a buyer.
In 2010, MetLife Home Loans ranked as the 11th largest mortgage servicer in the U.S., with its servicing business valued at $115.9 billion in the fourth quarter. The company also ranked 13th on the list of mortgage originators, holding 1.4% of the market and originating roughly $22 billion in mortgages last year.
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