Metlife Exits The Loan Business And B of A Makes A Startling Announcement

I wanted to send you a quick update on some rumors that have been circulating around the mortgage industry for a while that were confirmed today.

 Metlife’s mortgage division closed their doors last week.  Most of the 4,500 employees with Metlife will be losing their jobs in the next 90-180 days.   Apparently they will continue to take rate-locks and new submissions until Friday January 13^th and have promised to close out their existing pipeline in a timely manner.

 However, it appears that all pre-approvals and files not locked or submitted by last Friday will be voided. 

You can find the entire story here:

http://www.chicagotribune.com/business/sns-rt-us-metlifetre80929q-20120110,0,5164614.story

http://www.businessweek.com/news/2012-01-10/metlife-exits-mortgage-business-most-of-4-300-will-lose-jobs.html

 I’m always upset to see any company within my industry fail.  However, I can’t help but find these events to be a testament to the sound business practices of my company and the financial strength of our parent company.  Additionally, there are several lenders I know at Metlife that may be migrating over to our company and we welcome these producers with open arms.

 Furthermore, yesterday, B of A announced to their staff that they will no longer be accepting applications for cash-out refinances.  This is just another example of how our competitors are attempting to shrink their mortgage business.

 If you have any questions about these developments, please don’t hesitate to call Scott Groves (818) 679-5188