MetLife Inc. has joined other mortgage companies in postponing foreclosure sales in some states.
John Calagna, a spokesman for the insurer, confirmed Friday that the company had done so after Moody's Investors Service said the company had found "irregularities" in its foreclosure processes. "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," Calagna 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 Thursday 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.