Coruscation

January 10, 2012
MetLife to Close Mortgage Unit
By BLOOMBERG NEWS

MetLife, the nation's largest life insurer, announced Tuesday that it would close its home mortgage-origination operation, costing the company at least $90 million. Most of the 4,300 employees at the unit will lose their jobs.

"The majority will no longer have a position," said John Calagna, a spokesman for MetLife. Most of the workers at the business are based in Irving, Tex., Mr. Calagna said.

MetLife said in October that it was seeking a buyer for its mortgage unit after announcing plans to sell deposit-gathering operations to reduce federal oversight. The company reached a deal last month to sell about $7.5 billion of its bank's deposits to General Electric.

The Federal Reserve, which oversees MetLife because of its size and banking operations, rejected its plan last year to raise its dividend and resume share buybacks.

The insurer said affected employees include sales representatives and support staff members. The company has not begun dismissals and will give employees 60 days' notice, Mr. Calagna said. Workers can apply for other positions in the company, he said.

MetLife will continue to service current home-loan clients and offer reverse mortgages, the company said. The wind-down may cost as much as $110 million, according to the statement.