MetLife Inc. has announced that it is exiting the reverse mortgage business, and that Nationstar Mortgage LLC will be purchasing MetLife Bank's reverse mortgage servicing portfolio. The transaction is subject to certain regulatory approvals and other customary closing conditions. MetLife Bank will no longer accept new reverse mortgage loan applications and registrations.
MetLife's entire retail banking business, including mortgages, represented under two percent of the firm's 2011 operating earnings. Given MetLife's strategic focus as a global insurance and employee benefits leader, the company decided in 2011 that a bank holding company structure was no longer appropriate. Since that time, MetLife has reached agreements to sell MetLife Bank's deposit business to GE Capital and to sell the bank's warehouse finance business to EverBank. In addition, the bank has ceased taking forward mortgage applications.
MetLife was advised by K&L Gates LLP and Deutsche Bank Securities Inc.