Flagstar Bank Sells Mortgage Servicing Business in $1.4 Billion Deal

Flagstar Bank, N.A. has announced the sale of its mortgage servicing business. The proposed deal is valued at approximately $1.4 billion. The transaction is expected to add 60 basis points to the Common Equity Tier 1 (CET1) ratio of New York Community Bancorp (NYCB) involved in the deal.

Flagstar Bank, N.A. has revealed that it will be selling its mortgage servicing business in a transaction valued at about $1.4 billion. This significant move was announced recently, capturing the attention of stakeholders and industry observers alike.

The proposed deal is anticipated to substantially benefit New York Community Bancorp (NYCB), a key player in the transaction. Specifically, it will add 60 basis points to NYCB's Common Equity Tier 1 (CET1) ratio, a measure of a bank's core capital strength.

This sale marks a notable shift in the strategies of both Flagstar Bank and NYCB, reflecting broader trends and financial maneuvers in the banking and mortgage industries.

(With inputs from agencies.)