MetLife was expected to follow in the footsteps of Wells Fargo and Bank of America after these two banks sold their home equity loan (aka reverse mortgage) businesses.
Not only has MetLife stuck to its guns in reverse mortgages, but has decided to jump out of forward mortgages altogether by announcing it is looking for buyers.
The exit of BofA and WF has allowed MetLife to take the number one spot in the reverse mortgage market, and it appears that MetLife is moving to commit itself to maintaining that position for the long run.
MetLife spokesperson David Hammerstrom says that the resources demanded by maintaining its forward mortgage section would “divert” the company from its primary focus of providing global insurance and employee benefits.
The operating and capital characteristics of reverse mortgages, Hammerstrom continues, differ from forward mortgages.
Stricter regulations for bank holding units were brought about by the Dodd-Frank act and have compelled MetLife to sell its banking unit in July this year. This will allow the company to focus on insurance as MetLife is primarily an insurance company.
In the meantime, the company will continue writing mortgages until it finds a buyer for its forward mortgage business.