Mortgage Daily Logo

Fed Issues Sanction Against MetLife

Mortgage News

MetLife Inc. can’t get out of the mortgage business fast enough. The insurance provider has been hit with a monetary sanction in connection with its servicing and foreclosure practices. The sanction is similar to those handed out to larger banks in February in connection with the massive mortgage servicer settlement.

In April 2011, Bridgewater, N.J.-based MetLife Bank, N.A., was one of more than a dozen major mortgage servicers hit with consent orders by the Federal Reserve, the Office of the Comptroller of the Currency or the Office of Thrift Supervision. The orders required the servicers to clean up their foreclosure and servicing processes.

Servicing deficiencies addressed by the orders were summarized in the Interagency Review of Foreclosure Policies and Practices jointly produced by the Federal Reserve Board, the OCC and the Office of Thrift Supervision.

MetLife has since disclosed plans to exit mortgage lending altogether.

In January, plans were announced to close down Irving, Texas-based MetLife Home Loans and sell MetLife Bank deposits to GE Capital. Not long after that, the company said it would close its reverse mortgage lending business and sell off the servicing portfolio to Nationstar Mortgage LLC.

MetLife said that it was at a competitive disadvantage with other insurance companies because of the excessive regulation it is subject to as a bank-holding company.

But MetLife’s mortgage troubles still aren’t over.

On Tuesday, the Fed said it issued a $3.2 million monetary sanction against the New York-based company because it failed to adequately oversee its subsidiary bank’s mortgage loan servicing and foreclosure processing operations. The amount of the sanction factors in “the maximum amount prescribed for unsafe and unsound practices under the applicable statutory limits, the comparative severity of MetLife’s misconduct, and the comparative size of MetLife’s foreclosure activities.”

The sanction against MetLife is similar to the $767 million in monetary sanctions announced in February by the Fed against five bigger banks in conjunction with the multi-state servicer settlement.

“Although MetLife was not a party to the settlement in February, the board’s monetary sanctions against MetLife contemplate the possibility of a similar settlement under which MetLife agrees to provide borrower assistance or remediation,” a Fed statement said.

According to the Fed, if MetLife agrees to a settlement with state attorneys general and the Justice Department by June 30, 2013, then MetLife will be required at that time to pay the Fed the unused portion of the $3.2 million. If no settlement occurs by Aug. 6, 2014, then the portion of the $3.2 million that hasn’t been expended will be paid to the Fed.

“The board is taking action against MetLife at this time in light of MetLife’s publicly announced decision to sell its subsidiary bank’s deposit-taking operations,” according to the Fed. “Because that sale is subject to formal approval by regulators other than the board and would result in MetLife no longer being a bank holding company, the board believes it is appropriate to act at this time.”

Related Posts

NewDay USA CEO Rob Posner Expects 10% Increase in 2019 Mortgage Loan Volume

There is No Such Thing as a Free House …

Over the past several years, those who service loans in the State of Washington(1) have seen a dramatic rise in the number of lawsuits in which delinquent borrowers seek to quiet title to their homes on the grounds that lenders are barred from foreclosing based on...

NewDay USA CEO Rob Posner Expects 10% Increase in 2019 Mortgage Loan Volume

Mortgage Servicer Portfolios

servicing news | mortgages outstanding statistics | foreclosure news   Servicing Portfolios as of 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | 2012 | 2011 | 2010 | 2009 | 2008 | 2007 | 2006 Residential Servicing Portfolios by Servicer Last Updated December 14, 2018...

NewDay USA CEO Rob Posner Expects 10% Increase in 2019 Mortgage Loan Volume

Fannie Mae Profile

Last Updated December 27, 2018 7:38 PM Central   full list | other directories | bank search | SEC filings | execs | m&a | production   Government Takes Over Fannie, Freddie Sept. 8, 2008 The government has seized control of Fannie Mae and Freddie Mac. The move --...

NewDay USA CEO Rob Posner Expects 10% Increase in 2019 Mortgage Loan Volume

Freddie Mac Profile

Government Takes Over Fannie, Freddie Sept. 8, 2008 The government has seized control of Fannie Mae and Freddie Mac. The move -- which is likely to push mortgage rates lower and provide a sense of stability for the more than 10,000 employees at both companies -- is a...

Popular posts

How Long Does It Take to Refinance a Mortgage
How Long Does It Take to Refinance a Mortgage

So, you’re interested in refinancing your mortgage. Maybe you want some extra capital to do that home project you’ve always dreamed of, interest rates are nearing record lows, or you want to start consolidating debt. Regardless of the motivation behind the refinance,...

How Does Refinancing a Mortgage Work
How Does Refinancing a Mortgage Work

A home purchase is considered an investment, and a robust one at that. Savvy owners are constantly looking for new ways to reduce debt, save money, pay less in interest, and ultimately build equity. Refinancing is one way to leverage your investment and do just that....

What Does It Mean to Refinance Your Home
What Does It Mean to Refinance Your Home

You can think of refinancing your mortgage as a debt redo. Essentially, you’ll swap out the existing loan for a new one - ideally with better terms and conditions. Only this time it could help you save money on high mortgage payments, rather than just borrow it....

Setting up the Utilities in My New House
Setting up the Utilities in My New House

All the tedious, time-consuming home closing documents have been signed, sealed, and delivered. Your belongings are packed into what seems like a million boxes and you have a solid plan to haul all your existing furniture to the new place. Just as your boxes and...

When Is My First Mortgage Payment Due?
When Is My First Mortgage Payment Due?

Navigating your way through a brand new mortgage loan can be a difficult task, especially for first time homeowners. After handing over a large sum of money for the down payment and closing costs, it’s important to pay attention to the timing of your first mortgage...

Newsletter

Don’t worry, we don’t spam