(RTTNews) - Flagstar Bank, N.A., the bank subsidiary of New York Community Bancorp, Inc. (NYCB), announced on Thursday that it has inked a deal to sell its residential mortgage servicing business, including mortgage servicing rights and the third-party origination platform, to Mr. Cooper Group Inc. (COOP) for around $1.4 billion.
Joseph Otting, CEO of New York Community Bancorp, said: "While the mortgage servicing business has made significant contributions to the Bank, we also recognize the inherent financial and operational risk in a volatile interest rate environment, along with increased regulatory oversight for such businesses. We are focused on transforming the Bank into a leading, relationship-focused regional bank."
The transaction, to be closed in the fourth quarter of 2024, will add 60 basis points to cet1 ratio and accelerates transition to a diversified, full-service regional bank.
NYCB was trading down by 7.50 percent at $10.12 in the pre-market trade on the New York Stock Exchange.
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