(Bloomberg News) MetLife Inc., the largest U.S. life insurer, agreed to sell its reverse-mortgage portfolio to Nationstar Mortgage LLC as Chief Executive Officer Steven Kandarian retreats from banking to limit U.S. regulation.
MetLife will no longer accept applications for reverse mortgages, the New York-based insurer said today in a statement that didn't disclose terms.
Kandarian has agreed to sell about $7.5 billion of deposits to General Electric Co. and said in January it would stop originating home loans after the Federal Reserve rejected MetLife's plan for a dividend increase. Banking operations subjected the company to Fed oversight even though they generated less than 2 percent of 2011 operating earnings.
"Given MetLife's strategic focus as a global insurance and employee benefits leader, the company decided in 2011 that a bank holding company structure was no longer appropriate," according to today's statement.
MetLife advanced 1 percent to $36.31 at 2:12 p.m. in New York. The insurer was advised by K&L Gates LLP and Deutsche Bank Securities Inc.