MetLife (MET) said that it will cut more than 800 workers in Irving, Texas, as it exits from the home mortgage origination business. The layoffs will take place at two locations, beginning March 30 and ending May 31, according to a letter MetLife sent to Texas Workforce Commission and Irving mayor Beth Van Duyne.
When the company first announced that it will be shutting its home mortgage-origination operation year in the year, it said it would cut a total of 4,300 workers in the unit.
The largest U.S. life insurer said in October that it is putting its mortgage unit up for sale, following plans to sell it deposit-gathering operations to reduce federal oversight. In December, the firm agreed to sell $6.5 billion worth of bank deposits to General Electric (GE).MetLife's mortgage business could be hard to sell because of potential regulation complications. Another option the firm said it would pursue is winding down the business, which it estimates would cost as much as $110 million. For now, the company plans to continuing servicing its current mortgage customers but will no longer accept new loan applications for forward mortgages.
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