Metlife Fed

7/31/2019 Metlife Fed

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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.


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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);

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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.

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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:

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(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.

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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.

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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:

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(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.

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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.

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