The Nation’s 11th Largest Mortgage lender is getting out of the business due to excessive regulations


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WOW!  This puts things into perspective a bit.  We all complain about the banks on their underwriting and that they are “not lending” now.  I knew they were pummeled with new regulations but had no idea to what extent.

The nation’s 11th largest mortgage servicer and 13th largest mortgage originator is getting out of the business due to excessive regulations according to HousingWire.  If a company can walk away from a$115.9billion servicing business it has to be bad…

MetLife Bank, a division of insurer MetLife Inc. (MET: 31.75 0.00%), is selling the bank’s mortgage business, citing uncertainty in the marketplace and a regulatory environment that requires excessive resources.

…In 2010, MetLife Home Loans ranked as the 11th largest mortgage servicer in the U.S., with its servicing business valued at $115.9 billion in the fourth quarter. The company also ranked 13th on the list of mortgage originators, holding 1.4% of the market and originating roughly $22 billion in mortgages last year.

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This not the direction we should be heading in to improve the housing market.  Having more banks lending would be helpful, not banks walking away from the business…

 

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5 Comments

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5 responses to “The Nation’s 11th Largest Mortgage lender is getting out of the business due to excessive regulations

  1. Craig, When I try and explain to people all of the extra regulations in just my part of the business, people just don’t get it. I think you have to actually experience it too understand it. When I used to be able to do 15-20 appraisals a week 5 years ago, and now I can barely get 5-6 done, then something is really wrong. I’m sure you’ve probably blogged about this, but BofA is closing down their mortgage wholesale division, another blow to mortgage brokers. I would be curious to know how much the cost of purchasing a house has gone up over the past 10 years.

    • How much of the Dodd-Frank legislation impacts the appraisals? I have wanted to go through the regulations on a series of blog posts, but I am a Realtor and not really impacted directly by as many regulations as Appraisers and lenders have been hit with. (by comparison, Realtors escaped this relatively clean of blame with the exception of a few bad apples in obvious fraud cases…)
      Have you thought about posting some of the new regulations?
      I know a small private lender that closed their doors due to these regulations and the things that he was telling me about the new regulations I could hardly believe.

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