Flagstar Bank to Sell Mortgage Servicing Business for $1.4 Billion

New York Community Bancorp's subsidiary restructures amid significant financial losses and strategic shifts.

Flagstar Bank will sell its mortgage servicing rights and third-party origination platform to Mr. Cooper Group Inc.
The deal, valued at $1.4 billion, is expected to close in the fourth quarter of 2024.
New York Community Bancorp reported a net loss of $323 million for the second quarter.
The sale is part of a broader strategy to transition Flagstar into a relationship-focused regional bank.
Mr. Cooper Group Inc. will gain 1.3 million customers through the acquisition.