Life insurer ""MetLife"":http://www.metlife.com/about/index.html announced Tuesday that it will cease originating forward residential loans and exit the business entirely.[IMAGE]
The company said in a statement that it would continue to service existing customers, even while it ceases accepting new loan applications for forward mortgages. MetLife also said that it[COLUMN_BREAK]
would continue to originate reverse mortgages.
MetLife said it expected to incur as much as $90 to $110 million in costs after tax next year for leaving the business.
A spokesperson for the company could not immediately be reached for comment.
In October MetLife announced that it planned to exit its share of the forward mortgage originations market, citing an ""uncertain marketplace and regulatory environment"" that helped make it less profitable for the company.
The life insurer ended speculation about its forward mortgage originations business in late December with news that General Electric Co. would acquire would acquire most of its depository business.
""We continue to move forward with our plans to cease being a bank holding company,"" ""_Bloomberg News_"":http://www.bloomberg.com/news/2012-01-10/metlife-to-exit-origination-of-residential-mortgages-u-s-insurer-says.html quoted CEO Steve Kandarian as saying in December. ""This is essential to ensure that MetLife operates on a level playing field with other insurance companies.""