MetLife Announces Closure of Home Mortgage Sector
MetLife, the nation’s largest life insurer, will shut down its home mortgage division, costing the company at least $90 million and eliminating around 4,300 jobs associated with the business, The New York Times reported Jan. 10.
MetLife had been searching for a buyer for its mortgage unit since October 2011, when it announced plans to sell deposit-gathering operations in order to reduce federal oversight. The company reached a deal in December to sell about $7.5 billion of its bank deposits to General Electric but failed to find a buyer for its mortgage unit, the Times reported.
Costs associated with shutting down the home mortgage division were projected to be as high as $110 million. MetLife noted that following the shutdown, it would continue to service its current home-loan clients and offer reverse mortgages, the Times reported.