WASHINGTON -- The Federal Reserve is imposing $3.2 million in penalties against MetLife Inc. for failing to prevent foreclosure abuses by its bank subsidiary.
The Fed announced the action Tuesday against the largest U.S. life insurer. MetLife Bank was among 16 major mortgage lenders and servicers cited by the Fed and other U.S. regulators in April 2011 for improperly foreclosing upon homeowners in 2009 and 2010.
The Fed said at that time it planned to impose fines in the future.
The Fed said its action Tuesday was similar to the $25 billion settlement on foreclosure practices reached in February by the federal government and 49 states with the five biggest mortgage lenders.
New York-based MetLife said Tuesday it has gotten out of the home loan business and is also exiting retail banking.