New York Community Bancorp in Hicksville reported another quarterly loss and announced plans to sell its residential mortgage servicing business to Mr. Cooper for roughly $1.4 billion.
The $119.1 billion-asset company said in a press release that it lost $323 million in the second quarter. Its loan-loss provision increased by 24% in the second quarter compared to a quarter earlier, to $390 million.
“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,” Joseph Otting, New York Community’s CEO, said in a press release.
The company said that it will sell $1.2 billion of assets and the subservicing business in a deal expected to close in the fourth quarter.