Met Life Exits Reverse Mortgage Business
Reuters reports that MetLife Inc, the largest U.S. life insurer and reverse mortgage lender, made a surprise shift on Thursday with the sale its reverse mortgage business as part of its exit from banking-related activities.
Nationstar Mortgage LLC will buy its reverse mortgage servicing portfolio, and MetLife Bank would not accept any new applications, the company said.
Will Product Mix Struggle with Loss of Large Reverse Mortgage Lenders?
Reverse Mortgage Daily reports most reverse mortgage competitors agree that MetLife’s exit from the business will turn out to not be such a bad thing in the long run. But the future may be less clear for one important segment of the market: the HECM Saver.
“Wells Fargo and MetLife were far and away the biggest originators of Savers,” says John Lunde, president and co-founder of Reverse Market Insight. ”That’s going to be one of the things that is unknown right now,” he says. “MetLife definitely was leading the way, although some other companies have been active as well.”