MetLife Home Loans to pay $123.5M in mortgage resolution
Admitted it knowingly made faulty mortgages
MetLife Home Loans agreed to pay $123.5 million to resolve allegations it knowingly made mortgages insured by the government that failed to meet federal underwriting standards, an article in The Wall Street Journal said.
The deal between the MetLife unit and the Justice Department involves loans insured by the U.S. Department of Housing and Urban Development’s Federal Housing Administration.
MetLife admitted as part of the settlement that its banking subsidiary had been aware that a substantial percentage of loans weren’t eligible for FHA mortgage insurance due to its own internal quality-control findings. These quality-control findings were routinely shared with MetLife Bank’s senior managers, including the chief executive officer and board of directors, the Justice Department said.