MetLife Inc. late last week joined other mortgage servicers in postponing foreclosure sales in certain states.
A spokesman for the bank holding company confirmed that its mortgage division had done so after Moody's Investors Service said the unit had found "irregularities" in its foreclosure processes.
Among residential servicers, MetLife Home Loans ranks 11th with $100 billion in receivables, according to figures compiled by National Mortgage News and the Quarterly Data Report.
"As part of its practice, MetLife Home Loans verifies mortgage information included in affidavits filed in foreclosure proceedings and is satisfied that the information is accurate," the spokesman said in an e-mail.
"MetLife Home Loans also regularly reviews and, when necessary, enhances foreclosure practices and procedures. Like many banks, MetLife Home Loans has been asked to closely review these procedures at this time and is doing so."
Moody's placed MetLife Home Loans and two other mortgage servicers, Bayview Loan Servicing LLC and Goldman Sachs Group Inc.'s Litton Loan Servicing LP, on review late last week for a possible downgrade. MetLife Home Loans, a unit of MetLife Bank, may have its servicer-quality grade cut by Moody's, the rating firm said.
"Irregularities in foreclosure processes could result in legal challenges to previously completed foreclosures and reputational risk for the servicing operation," Moody's said.
