Metlife Fed
-
Upload
foreclosure-fraud -
Category
Documents
-
view
239 -
download
0
Transcript of Metlife Fed
-
7/31/2019 Metlife Fed
1/9
UNITED STATES OF AMERICA.
BEFORE THE
BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM.WASHINGTON, D C .
In the Matter ofMETLIFE,INC.NewYork,NewYork.DocketNo.12-053-CMP-HC.OrderofAssessmentofaCivilMoneyPenaltyIssuedUponConsentPursuanttotheFederalDepositInsuranceAct,asAmended.
WHEREAS, MetLife, Inc., New York, New York (MetLife), a registered bank holding
company, owns and controls MetLife Bank, National Association, Bridgewater, New Jersey
(the Bank), a national bank;
WHEREAS, MetLife, through the Bank, indirectly engages in the business o f servicing
residential mortgage loans for the Bank, U.S. government-sponsored entities (the GSEs), and
various investors;
WHEREAS, with respect to the residential mortgage loans it services, the Bank initiates
and handles foreclosure proceedings and loss mitigation activities involving nonperforming
residential mortgage loans, including activities related to special forbearances, repayment plans,
modifications, short refinances, short sales, cash-for-keys, and deeds-in-lieu of foreclosure
(collectively, Loss Mitigation);
WHEREAS, as part of a horizontal review o f various major residential mortgage
servicers conducted by the Board o f Governors o f the Federal Reserve System (the Board o f
Governors), the Federal Deposit Insurance Corporation, the Office o f the Comptroller of the.Pagebreak.
-
7/31/2019 Metlife Fed
2/9
Currency (the OC C), and the Office of Thrift Supervision, examiners from the Federal Reserve
Ba nk of New Yo rk (the Reserve Ba nk) and the OCC reviewed certain residential mortgage
loan servicing and foreclosure-related practices at the Bank;
W HE RE AS , on April 13, 2011, the Bank and the OCC entered into a consent order to
address areas of alleged weakness identified by the OCC in loan servicing, Loss M itigation,
foreclosure activities, and related functions (the OCC Consent Order);
WHEREAS, in the OCC Consent Order, the OCC made findings, which the Bank neither
admitted nor denied, that there were unsafe or unsound p ractices with respect to the mann er in
wh ich the Ban k hand led various foreclosure and related activities;
W HE RE AS , the O CC s findings also raised concerns that M etLife did not adequately
assess the potential risks associated with these activities;
W HE RE AS , as evidenced by the findings in the OC C C onsent Order, MetLife allegedly
failed to provide effective oversight with respect to the loan servicing, Loss Mitigation,
foreclosure activities, and related functions of the Bank, including the B ank s risk management,
audit , and comp liance programs, ven dor managem ent, docum ent execution practices, and
staffing and managerial resources as they pertain to those activities and related functions;
W HE RE AS , on April 13, 2011, the Board o f Governors and MetLife entered into a
Consent O rder to address the concerns raised by the OC C Consent O rder and requiring MetLife
to take specific m easures to address those concerns (the Board Consent O rder);
W HE RE AS , the conduct which was the subject of the Board Co nsent Order allegedly
constitutes unsafe or unsoun d practices in conducting the affairs o f M etLife relating to the Ban k
within the meaning of section 8 o f the Federal Depo sit Insurance Act, as am ended (12 U.S.C.
1818) (the FD I Act);
P a g e
-
7/31/2019 Metlife Fed
3/9
W HE RE AS , the Board of Governors issues this Order of Assessm ent of a Civil Money
Penalty Issued Upon Con sent (the Co nsent Assessmen t Order) against M etLife in conjunction
with the Board C onsent Order;
WHEREAS, MetLife has taken steps to comply with the Board Consent Order and
continues to take ad ditional steps;
W HE RE AS , M etLife has consented to the assessment of a civil money penalty in the
amou nt of $3,200,000 by the Board of Governors (the CM P) pursuant to section 8(b)(3) and
(i)(2)(B) of the FD I Ac t (12 U.S.C. 1818(b)(3) and 1818(i)(2)(B)) for allegedly unsafe or
unsound practices described above, wh ich penalty shall be remitted by the Bo ard o f Governors
unde r the conditions set forth in this Co nsent Assessm ent Order;
W HE RE AS , pursuant to delegated authority, Nicholas D. Latrenta, Executive Vice
President and G eneral Counsel, is authorized to execute this Co nsent Assessmen t Order on
beh alf of M etLife, and consent to comp liance w ith each and every ap plicable provision o f this
Consent Assessment Order by MetLife and its institution-affiliated parties, as defined in sections
3(u) and 8(b)(3) o f the FD I A ct (12 U.S.C. 1813(u) and 1818(b)(3)), and w aiving any and all
rights that Me tLife may hav e pursua nt to section 8 of the FD I Act (12 U.S.C . 1818), including,
bu t no t limited to: (i) the issuance o f a notice of assessm ent of civil mo ney pe nalty; (ii) a hearing
for the purpo se of taking evidence on any m atters set forth in this C onsent Assessm ent Order;
(ii i) judicial review of this C onsent A ssessment O rder; (iv) contest the issuance o f this Con sent
Assessm ent Order by the Board of Governors; and (v) challenge or contest, in any manner, the
basis, issuance, validity, terms, effectivene ss or enforceab ility of this Con sent Assess me nt Order
or any provision hereof.
p a g e
-
7/31/2019 Metlife Fed
4/9
NO W , TH ERE FO RE, b efore the filing of any notices, or taking of any testimony or
adjudication o f or finding on any issues o f fact or law herein, and w ithout this C onsent
Assessm ent Order constituting an adm ission or denial by MetLife o f any allegation made or
implied by the Board of Governors in co nnection with this matter, and solely for the pu rpose o f
settl ing this m atter without a formal proceeding being filed and without the necessity for
protracted or extended hearings or testimony, i t is hereby O RD ER ED by the Bo ard of
Governors, pu rsuant to sections 8(b)(3) and (i)(2)(B) o f the FD I Act (12 U.S.C. 1818(b)(3)
and 1818(i)(2)(B)), that:
1. M etLife is hereby assessed a CM P in the amou nt of $3,200,000 to be paid as
provided in this Consent A ssessment Order.
2. If M etLife and/or the Ba nk (individually, a M etLife Pa rty or collectively, the
MetL ife Parties) enter into an agreem ent with the United States Departm ent of Justice and/or
with one or more of the Attorneys G eneral of various states regarding potential civil claims
against a M etLife Party for conduct, am ong o ther things, in connection with the servicing of
mo rtgage loans by the Bank und er which a M etLife Party agrees to provide consum er relief,
wh ich m ay include m ortgage principal reductions or other assistance to residential mortgage
borrowers (the Settlement Agreem ent), pursuant to section 8(i)(2)(F) of the FD I Act (12
U.S.C. 1818(i)(2)(F)), the Board o f Governo rs shall remit up to $3,200,000 o f the CM P by an
amou nt equivalent to the aggregate dollar value o f consum er relief provided by a M etLife Party
pursuant to such Settlement Agreem ent (Borrower A ssistance) and that portion o f any
paymen ts made by a MetLife Party to the Un ited States that go directly to various agencies o f the
federal governm ent (the Federal Paym ents) pursuant to any Settlement Agreem ent, under the
following conditions:
P a g e
-
7/31/2019 Metlife Fed
5/9
(i) The Settlemen t Ag reem ent is entered into no later than June 30, 2013;
(ii) The Bo rrower A ssistance is provided for the remedial programs specified in the
Settlement Agreem ent, wh ich may include mortgage p rincipal reductions or refinancing, or other
assistance to residential m ortgage borrowers, in accordance w ith the terms and con ditions
specified in the Settlement A greemen t for such programs;
(ii i) The am ount of Bo rrower A ssistance that must be provided under the Settlement
Agreem ent is determined pursuant to a crediting m echanism specified in the S ettlement
Agreem ent, provided that no amo unt shall be remitted for purposes of this Consent A ssessment
Order for bonuses or incentives received by o r credited to a MetLife Party unde r the Settlement
Agreement;
(iv) Before a Me tLife Party provides any Bo rrower Assistance, the remedial programs
described in paragraph 2(ii) and the crediting mechanism described in paragraph 2(iii) are
approved by the Reserve Bank;
(v) Any docum ents associated with the Borrow er Assistance provided and Federal
Paym ents made by a MetLife Party pursuant to the Settlement Ag reemen t are made available to
the Reserve Ba nk upon request;
(vi) On a quarterly basis beginning on execution of the Settlement Agreem ent and until
the earlier of the date on wh ich the Settlement A greem ents requirements pertaining to the
Bo rrower A ssistance and Fed eral Paymen ts are fully satisfied or on wh ich the CM P has been
fully satisfied, MetLife submits to the Reserve B ank a detailed report and accounting on the
Bo rrower Assistance provided and Federal Paym ents made pursuan t to the Settlement
Agreem ent and a certification by M etLife that any such Bo rrower A ssistance provided and.
P a g e
-
7/31/2019 Metlife Fed
6/9
Federal Paym ents made w ere provided and m ade in full compliance with the terms and
conditions o f the Settlement Agreement; and
(vii) W ithin the earlier o f 30 days after full satisfaction of the terms and cond itions o f the
Settlement A greem ents requirements pertaining to Borrow er Assistance and Federal Payments
or two years after the date of execution of the Settlement A greement, M etLife submits to the
Reserve B ank a certification that any Borrow er Assistance provided and Federal Paym ents made
pursuant to the Settlement Agreem ent were provided and m ade in full com pliance with the terms
and cond itions o f the Settlement Agreement.
3. Purs uan t to section 8(i)(2)(F) o f the FD I Ac t (12 U.S.C . 1818(i)(2)(F)), the
Board of Governors shall also remit up to $3,200,000 o f the C MP, to the extent not remitted
pursuant to paragraph 2 , by an amou nt equivalent to the aggregate amou nt of funds ex pended by
M etLife on funding for non profit housing cou nseling organizations, approved by the U.S.
Dep artment of Hou sing and Urban Developm ent, to provide counseling to borrow ers who are at
risk of or are in default or foreclosure, or to provide assistance to borrowers in connection with
the independent foreclosure reviews required by the Board Con sent Order and the OCC Consent
Order, under the following conditions:
(i) At least 30 days prior to the making of any expend itures pursuant to this paragraph 3,
M etLife subm its to the Reserve B ank an acceptable w ritten plan for making such expenditures,
including the mann er by which such expenditures shall be credited to M etLife (the Plan to Fund
Hou sing Coun seling Organizations); and
(ii) M etLife fully com plies with the accepted Plan to Fund Ho using Cou nseling
Organizations.
P a g e
-
7/31/2019 Metlife Fed
7/9
4. N o later than two years after the date o f execution of any Settlement Ag reement
or, in the event there is no Settlement Agreement prior to June 30, 2013, two years after the date
of execution of this Consent A ssessment Order, MetLife shall pay any portion of the C MP that
has not been rem itted pursuan t to paragraphs 2 or 3 o f this Consen t Assessment O rder as of such
date, plus interest on such portion c alculated from the date o f execution of this Con sent
As sessm ent Ord er at the rate set forth in 28 U.S. C. 1961.
5. Paym ent of the CM P pursuant to paragraph 4 of this Con sent Assessm ent Order
shall be made by a Fedw ire transfer to the Federal Reserve Ba nk o f Richmo nd, A BA N o. 05
1000033, to the order of the Board o f Governors G eneral Fund, FRB General Ledger A ccount
num ber 220 400 010, w hich penalties the Board o f Governors shall deposit on be half of the
Board of Governors into the U nited States Treasury as required by section 8(i)(2)(J) o f the
FDI Act, (12 U.S.C. 1818(i)(2)(J)).
6. M etLife agrees that, in the event that M etLife com pletes currently planne d actions
as a result of wh ich Me tLife is no longer a bank holding com pany for purposes o f the Bank
Ho lding Co mpany Act and such actions are com pleted before the time period for remitting or
paying the CM P am ounts pursuant to paragraphs 2, 3, or 4 o f this Consent Assessm ent Order has
expired, the Board shall continue to have the authority to enforce com pliance with the terms of
this Consent Assessm ent Order, including the paym ent o f any CM P, after the date on wh ich
M etLife ceases to be a bank holding company.
Notices
7. All com m unications regard ing this O rder shall be sent to:
P a g e
-
7/31/2019 Metlife Fed
8/9
(a) Mr. John G. Ricketti.
Vice President.
Federal Reserve Bank of New York.
33 Maiden Lane.
New York, New Y ork 10045.
(b) N icholas D. Latrenta.
Execu tive Vice President and General Counsel.
1905 A venue of the A mericas.
New York, New York 10036.
Miscel laneous
8. The provisions of this Consent Assessm ent Order shall be binding on M etLife and
its institution-affiliated parties in their capacities as such, and the ir successors and assigns.
9. Each provision of this Con sent Assessm ent Order shall remain effective and
enforceable until stayed, m odified, terminated, o r suspended in w riting by the R eserve Bank.
10. No twithstanding any provision of this Consent Assessm ent Order, the Reserve
Ba nk may, in its sole discretion, grant written extensions o f time to Me tLife to comply w ith any
provision of this C onsent Assessm ent Order.
11. Exce pt as provided for in this Consent Assessm ent Order, the Board of Gov ernors
hereby releases an d discharges M etLife and its affiliates, successors, a nd assigns from all
potential l iabili ty that has been or might have been asserted by the B oard o f Governors based on
the condu ct that is the subject of this Consent A ssessment Order, to the extent known to the
Board of Governors as of the effective date of this Consent Assessmen t Order. The foregoing
release and discharge shall not preclude or affect any right of the Board of Gov ernors to
determine and ensure compliance with the Board Co nsent Order or this Consent Assessme nt
Order, or any proceedings brought by the Board of Governors to enforce the terms o f the Board
Consent O rder or this Co nsent Assessmen t Order.
P a g e
-
7/31/2019 Metlife Fed
9/9
By Order of the Board of Governors effective this 6th day of August, 2012.
METLIFE, INC. By:/s/NicholasD.Latrenta.NicholasD.Latrenta,ExecutiveVicePresident.andGeneralCounsel.
BOARDOFGOVERNORSOFTHEFEDERALRESERVESYSTEM.By: /s/ Robert deV. Frierson.
Robert deV. Frierson.
Secretary o f the Board.
P a g e