New York Community To Sell Mortgage Banking Business To Freedom Mortgage

(RTTNews) - New York Community Bancorp Inc. (NYCB) said 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 will acquire both 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 and it entered into an agreement to sell the majority of one-to-four family residential mortgage-related assets, including those covered under the LSA, to an affiliate of Cerberus Capital Management, L.P.

The transactions are expected to close during the third quarter of 2017, subject to certain closing conditions, and, on a combined basis, result in a gain on sale of approximately $90.0 million on a pre-tax basis.