MetLife Inc. has announced the sale of its $70 billion mortgage servicing portfolio to JPMorgan Chase Bank N.A. Terms of the transaction were not disclosed.
The portfolio sale, which was quietly announced in a press statement issued Friday evening, is the latest move in MetLife's dismantling of its banking endeavors, which began last year. MetLife's entire retail banking business, including mortgages, represented less than 2% of MetLife's 2011 operating earnings.
‘Since that time, MetLife has entered into agreements to sell MetLife Bank's deposit business to GE Capital, sold the bank's warehouse finance business to EverBank, sold the bank's reverse mortgage servicing rights to Nationstar and ceased writing residential mortgages,’ says Jim Rose, president of MetLife Bank.
According to the companies, the $70 billion servicing portfolio will increase Chase's $1.1 trillion servicing business by more than 5%.
‘The acquisition of this high-quality portfolio reflects our strategy to strengthen and grow our Servicing business,’ says Eric Schuppenhauer, head of mortgage servicing at Chase. ‘We will be able to provide our full range of products and services to an additional 350,000 individuals and families. We expect that many of these customers will take advantage of historically low interest rates by refinancing.’