MetLife Exits Reverse Mortgages

30 Apr

Last Friday’s news reports were full of the sudden revelation: MetLife Home Loans will no longer offer reverse mortgages.  The reasons given range from the capital markets to regulatory issues.

How it affects borrowers:  Nationstar Mortgage will take over servicing existing loans.  Loans in the pipeline have until June 1, 2012 to fund.  These loans had to have been registered by midnight of May 26th.  All other loans will have to be submitted to other lenders.  LOs:  check with your account reps to see if they will accept applications already signed on MetLife forms (many will).

How it affects brokers:  just like when Bank of America and Wells Fargo left the reverse business, LOs will have to place their loans with another lender.  There will likely be a slowdown, because of the huge volume of loans that MetLife was processing.  These loans will all have to find homes somewhere else – good news for these other lenders, though there will be challenges in keeping up with the volume at first.

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