Fed Fines MetLife Bank $3.2M Over 'Unsound' Foreclosures

Law360, New York (August 7, 2012, 1:29 PM EDT) -- The Federal Reserve has fined MetLife Inc. $3.2 million for “unsafe and unsound” foreclosure and loan servicing practices at its subsidiary bank, even as the life insurance giant plans to leaving banking to avoid tighter regulation under Dodd-Frank.

The Fed said the company failed to adequately oversee mortgage-related operations, adding that the penalty was the maximum allowed under existing law given the relatively small size of MetLife's foreclosure activity.

The Fed said the allegations, which stemmed from April 2011 consent orders against MetLife Bank and 13...
To view the full article, register now.