Re: NYCB
Been looking to add to this Bank stock at/below $12.50/share. Not quite reached my price yet. This news out today looks positive and s/d help bring out some hidden value.
New York Community Bancorp, Inc. Announces Strategic Sale of Mortgage Banking Business and Residential Assets Covered under FDIC Loss Share Agreement
New York Community Bancorp, Inc. ( NYCB) (the “Company” or “New York Community”) today announced that it has entered into an agreement to sell its mortgage banking business, which was acquired as part of its 2009 FDIC-assisted acquisition of AmTrust Bank, to residential mortgage industry leader, Freedom Mortgage Corporation (“Freedom”). Freedom will acquire both our origination and servicing platforms, as well as our mortgage servicing rights portfolio with a current aggregate unpaid principal balance of approximately $21.0 billion. It is expected that Freedom will retain certain employees from the Company’s Cleveland, Ohio mortgage banking business and plans to maintain operations in the area.
Additionally, the Company has received approval from the FDIC to sell the assets covered under our Loss Share Agreements (the “LSA”) and we have entered into an agreement to sell the majority of our one-to-four family residential mortgage-related assets, including those covered under the LSA, to an affiliate of Cerberus Capital Management, L.P. (“Cerberus”), one of the world’s leading private investment firms. On the sale, the head of Residential Mortgage Investing and a Senior Managing Director of Cerberus, Joshua Weintraub stated, “Cerberus is pleased to announce the consummation of this transaction with New York Community. This deal demonstrates the market leading ability of Cerberus, along with its affiliated asset management company, FirstKey Mortgage, LLC, to partner with financial institutions to achieve mutually beneficial outcomes for certain mortgage assets.” As of March 31, 2017, the carrying value of these assets was approximately $1.9 billion.
----------------------------------------
EKS |
