HICKSVILLE, N.Y. - Flagstar Bank, N.A., a subsidiary of New York Community Bancorp , Inc. (NYSE: NYSE:NYCB), has agreed to sell its residential mortgage servicing rights and third-party origination platform to Mr. Cooper (NASDAQ: COOP) for approximately $1.4 billion. The sale is anticipated to conclude in the fourth quarter of 2024 and is expected to increase the bank's CET1 capital ratio by around 60 basis points.
The bank's Chairman, President, and CEO Joseph M. Otting expressed confidence in the transaction, highlighting the premium value of Flagstar's mortgage servicing platform and its industry respect.
Otting also noted the decision aligns with the bank's strategy to become a leading relationship-focused regional bank while acknowledging the risks associated with the mortgage servicing business in a volatile interest rate landscape.
Flagstar Bank will continue to offer residential mortgage products to its retail and private wealth customers, maintaining its commitment to customer relationships. Otting thanked the bank's mortgage servicing and third-party mortgage origination teams for their dedication to service quality.
As of March 31, 2024, New York Community Bancorp, Inc. reported $112.9 billion in assets and operates Flagstar Bank, N.A., which has a significant presence in various regions across the United States. The bank serves a diverse customer base through its extensive branch network and private banking teams.
Jefferies LLC is the exclusive financial advisor to New York Community Bancorp, Inc. for the transaction. The sale is part of the bank's broader strategic efforts, which include navigating the complexities of regulatory oversight and operational risks associated with the mortgage business.
This information is based on a press release statement and includes forward-looking statements subject to risks and uncertainties that could affect the bank's future results.
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