NYCB Sheds Mortgage Servicing Arm in $1.4B Deal with Mr. Cooper

New York Community Bank (NYCB) is selling its residential mortgage servicing business, including mortgage servicing rights and third-party origination platform, to Mr. Cooper for $1.4 billion.

This move, announced alongside a $323 million second-quarter loss, is part of NYCB’s strategy to transform into a “relationship-focused regional bank,” according to CEO Joseph Otting.

The sale, expected to close in the fourth quarter, suggests NYCB may be planning further divestitures as it refocuses its business model.