The Federal Reserve has imposed $3.2 million in sanctions against MetLife, Inc. for failing to adequately oversee its subsidiary bank's mortgage loan servicing and foreclosure processing operations. MetLife provides insurance, annuities and employee benefits for some 90 million customers.
The Fed says MetLife had “unsafe” and “unsound” practices in connection with the loans and foreclosures, according to a recent news release. In addition, the Fed will watch expenditures for borrower assistance, remediation, the counseling program and compliance by MetLife, as well as requirements of the sanctions. MetLife has said it will sell its subsidiary bank's deposit-taking operations to GE – if approved by regulators.
In June, the Office of the Comptroller of the Currency said the company would keep its status as a bank until dealing with any mortgage deficiencies.
MetLife is among several companies scrutinized by federal authorities for inappropriate foreclosure practices, according to news reports. Five bigger home lenders, including Bank of America Corp., reached a $25 billion settlement recently, according to Bloomberg News.
“The [Fed] Board continues to believe that monetary sanctions in the remaining cases are appropriate and plans to announce monetary penalties against those organizations,” the Fed stated in its press release.
In related news, on Aug. 1 MetLife reported Q2 operating earnings of $1.4 billion, which are 18 percent more than the Q2 of 2011, according to a company statement. Also, quarterly book value (not including accumulated other comprehensive income of $48.60 per share) was an increase of 12 percent compared to the same quarter in 2011. And quarterly net investment income was $5.2 billion, a 4 percent increase over Q2 of 201
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Edited by Amanda Ciccatelli