MetLife Buys First Horizon’s Residential Mortgage Business
MetLife has announced the purchase of First Horizon’s residential mortgage business. The volatility of the market and risk involved has made First Horizon nervous and they felt their shareholders were better served by getting out of the business.
Conversely, indications coming out of MetLife is that we are near the bottom of the mortgage crisis. Like buying real estate, once the price of an asset comes down to a certain level, most of the risk is then removed. MetLife obviously thinks there are some solid assets in the deal and has the size to absorb some of the losses in order to recognize the larger gains.
Either that or they are the greater fool.
The purchase includes the home loan unit of First Horizon’s Tennessee Bank National Association outside of that state, with 230 offices in the U.S., the New York-based insurer said today in a statement. MetLife said it isn’t acquiring any subprime or Alt- A mortgages in the purchase. Terms weren’t disclosed.
MetLife is expanding its banking services after agreeing in April to buy a reverse mortgage specialist from Jacksonville, Florida-based EverBank Financial Corp. Life insurers including No. 2 Prudential Financial Inc. and Principal Financial Group Inc. reiterated last month their strategies of investing in mortgages even after the meltdown of the subprime home market prompted writedowns and stock drops. via Bloomberg.com
I like your analogy in this article. The real estate economy really is like a patient who you cannot ...
Real Estate is hyper-local. Every market is different. Phoenix has already hit bottom and is starting to recover. We have ...
Great to hear that the big boys
are predicting recovery sooner than
most think.
Thanks for the value! 
I agree--good analogy. You have to crawl before you can walk. Right now, at least in Austin, many people would ...
I live in the Philippines and I am glad we are not on the lists... 
I have a few Litograghs of Presidents homes , made by Richard V. Sebring. yr. 1990 Do they have any ...
I see the question I have, but no response. I do not have a for sale sign up ...
I'll add mine to the list too. This is happening in Kansas City, Missouri as well now.
We already knew ...
Comment by Jason Welsh on 19 May 2009:
Hi, I’ve been waiting to buy a house from Metlife for four months now. I have the money ready over 20% to put down, and have yet to hear a thing from them. They have not been helpful at all, and in these times when banks are up to thier noses in foreclosures