Another Lender Bails!

By
Real Estate Agent with Starlight Realty Certified REO & Short Sale Specialist

Sign of the Times: MetLife, a Fortune 50 company with annual revenue around $66 billion, is getting out of the mortgage business.

Why? Apparently, with today’s burdensome regulatory environment, it’s just not worthwhile anymore. Surely, that’s not what federal legislators had in mind when they "reformed" the financial industry in 2010.

The decision didn’t come easy: the company expects this shift to cost $90 to $110 million, after taxes. MetLife tried to sell its mortgage division for some time. When that led nowhere, they decided to close up shop. The company will continue to honor its commitments to date, and is still originating reverse mortgages.

All of which begs the question: Who’s next?

Comments (3)

Brint Wahlberg
Windermere Real Estate - Missoula, MT
The Wahlberg Team

As more and more financial agencies stop lending the need for Fannie and Freddy to be "propped up" and continue to function is becoming more and more important, albeit unpopular.  It's either that... or have everything go FHA/VA...

Jan 15, 2012 05:09 AM
C. Lloyd McKenzie
Living Albuquerque - Albuquerque, NM
Living Albuquerque

Good Morning Sengdao,

It is a tough industry.  I like the idea of companies specializing in their area of expertise. 

Jan 15, 2012 05:25 AM
Bob & Carolin Benjamin
Benjamin Realty LLC - Gold Canyon, AZ
East Phoenix Arizona Homes

Tough industry at this point -- likely more will follow -- sign of the times it seems.

Jan 15, 2012 08:13 AM