The Bank Slate

INSIGHTS INTO THE BANKING INDUSTRY

New York Community posts another loss, selling mortgage servicing business

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.

Leave a Reply

Your email address will not be published. Required fields are marked *