MetLife Fined $3.2 Million for 'Unsafe' Foreclosures
The Federal Reserve announced Aug. 7 that it fined MetLife Inc. $3.2 million for “unsafe and unsound” practices in loan servicing and foreclosures, Reuters reported.
The Fed said the insurance giant failed to adequately oversee mortgage operations at its subsidiary bank, and noted that it levied the maximum financial penalty it could under existing law given the size of MetLife's foreclosure activities.
Profits at MetLife doubled in the second quarter to $2.26 billion after a huge gain on derivatives tied to falling interest rates, and operating results beat Wall Street expectations on double-digit growth in the Americas, Reuters reported.
MetLife had announced in April that it was anticipating fines related to its foreclosure practices and for the alleged questionable use of appraisals for packaged mortgage bonds.
Meanwhile, MetLife is eliminating almost all of its 4,300 mortgage-related jobs and is selling deposits in an effort to reduce federal oversight.