NYCB to Sell $5 Billion in Mortgage Loans to JPMorgan, Shares Rise Nearly 5%

May 15, 2024, 10:24 AM

New York Community Bancorp (NYCB), the parent of Flagstar Bank, has agreed to sell approximately $5 billion of mortgage warehouse loans to JPMorgan Chase. This deal, announced Tuesday night, is part of NYCB's efforts to dispose of assets following its rescue by investors. The sale is expected to improve NYCB's capital and liquidity position. Following the announcement, NYCB shares rose nearly 5% in premarket trading on Wednesday. The transaction has been praised as an important first step in NYCB's turnaround strategy.