MetLife thinks big in mortgages

In a deal that will expand its
involvement in the US residential property market significantly,
MetLife is to acquire the residential mortgage origination and
servicing business of First Tennessee Bank National Association
(FTBNA), a subsidiary of bank holding company First Horizon
National Corporation.

The FTBNA deal follows the US insurer’s announcement in April
this year that it was to acquire the reverse mortgage unit of
EverBank Financial. Both acquisitions are to be housed in Metlife’s
wholly-owned unit MetLife Bank.

FTBNA will bring with it all of its origination business outside of
Tennessee and servicing assets associated with about $20 billion of
first lien mortgage loans.

MetLife Bank is also entering into a sub-servicing agreement for
the remainder of First Horizon’s first lien servicing portfolio
which is expected to total about $65 billion. The acquisition
includes more than 230 retail and wholesale offices
nationwide.

“This [deal] will significantly accelerate the growth potential of
MetLife Bank’s residential mortgage business as it allows us to
acquire significant expertise, scale and platforms,” said Metlife
Bank’s president Donna DeMaio in a statement.

“Combined with our recently announced purchase of EverBank’s
reverse mortgage business, this acquisition effectively positions
MetLife Bank to be a leader in the origination and servicing of
mortgage products,” she said.

In the deal with First Horizon MetLife Bank will not assume any
subprime or Alt-A mortgages.