Insurance firm MetLife has inked an agreement to dispose of its nearly $70bn mortgage servicing portfolio to US based JPMorgan Chase Bank, for an undisclosed sum.
Subject to certain regulatory approvals and other customary closing conditions, the transaction will boost the acquirer’s $1.1 trillion servicing business by more than 5%.
As part of its decision taken in 2011, the underwriter is selling banking operations to fully concentrate on insurance and employee benefits businesses.
MetLife Bank president said the bank has recently sold out its deposit business to GE Capital, offloaded warehouse finance business to EverBank, disposed of reverse mortgage servicing rights to Nationstar, and ceased writing residential mortgages.
According to the latest financial results of the underwriter, its entire retail banking business, including mortgages, represented less than 2% of its 2011 operating earnings.
The company was advised by K&L Gates, Milestone Advisors and Deutsche Bank Securities on the deal.
New York based MetLife offers insurance, annuities and employee benefit programs, to 90 million customers.