It looks like MetLife, one of the biggest insurance companies, is getting out the mortgage business. According to the MetLife Press Release, they will be closing out their division and will be honoring all loans currently being closed within 90 days. MetLife also announced that GE Capital Financial Inc., will be acquiring most of the current loans. Also, according to the NY Times, 4,300 employees will lose their jobs. The NY Times, states that MetLife employees to be affected are mainly sales representatives and support staff. The company has given all employees 60 days notice before termination.

Now the most important part, how does this affect you if you have a MetLife loan? Well believe it or not, the sale of a loan is not uncommon. If you have ever purchased a home with a Mortgage Banker or direct lender, you may have experienced your loan payments being transferred to another bank. A Mortgage Banker typically does this, they get the loan, they fund the loan, and then they send out the loan application to several banks and see which one wants to buy it. Then they sell the loan to that bank, get a reimbursement for the amount they invested in it, and make a profit. This can also happen with mergers, for example; When Bank of America merged with CountryWide, people on Sunday who were with CountryWide, on Monday found out they were with Bank of America. So when MetLife announces that it will be closing its loan division, people who currently hold a MetLife loan or have a pending loan, will most likely find themselves with a new bank. Unfortunately, those who do not have a pending loan will find themselves seeking a new lender. As always, any questions, concerns, or comments please feel free contact us.