NYCB's Flagstar unit to cut around 1,900 jobs (updated)

Mr Cooper

18/10/2024 24:54

(Updates with details throughout, adds background in paragraphs
4 and 5)
       Oct 17 (Reuters) - New York Community Bancorp  NYCB.N 
unit Flagstar Bank will lay off around 1,900 employees, the U.S.
regional lender said on Thursday, amid efforts to turn around
its struggling business.
    Flagstar announced around 700 job reductions and said an
additional 1,200 jobs will be cut after it completes the sale of
its mortgage servicing unit to non-bank mortgage platform Mr.
Cooper  COOP.O . 
    NYCB said it anticipates finalizing a $1.4 billion sale of
the unit to Mr. Cooper in the fourth quarter of 2024, adding
that the majority of employees impacted by the layoffs will be
able to work for Mr. Cooper.
        NYCB came under pressure after it reported increased
stress in its commercial real estate portfolio in January, which
also rekindled concerns over the health of the sector recovering
from the failures of a slew of regional banks in 2023.
  
        NYCB, which on Tuesday said it will rename itself as
Flagstar Financial, 
    acquired
     Flagstar Bank in 2021 for $2.6 billion.
  

 (Reporting by Gursimran Kaur in Bengaluru; Editing by Shreya
Biswas)
 ((GursimranKaur.Mehar@thomsonreuters.com;))