MetLife Bank to sell $70B mortgage servicing portfolio to JPMorgan Chase
NEW YORK MetLife (MET) is selling its $70 billion mortgage servicing business to JPMorgan Chase (JPM) for an undisclosed price.
MetLife Bank said Friday that the move is part of its strategy to focus on the insurance side of its business. It decided last year that it no longer wanted to serve as a bank holding company and has subsequently sold off a number of those non-core businesses.
"MetLife has entered into agreements to sell MetLife Bank's deposit business to GE Capital, sold the bank's warehouse finance business to EverBank, sold the bank's reverse mortgage servicing rights to Nationstar, and ceased writing residential mortgages," said Jim Rose, president of MetLife Bank, in a statement on Friday.
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JPMorgan Chase said the deal will strengthen its own servicing business. It expects that business will grow as consumers refinance to take advantage of currently low interest rates.
The deal will increase the company's $1.1 trillion servicing business by more than 5 percent.