New York Community Bancorp's Flagstar Bank sells residential mortgage servicing business to Mr. Cooper Group for $1.4bn.

New York Community Bancorp's subsidiary, Flagstar Bank, has agreed to sell its residential mortgage servicing business to Mr. Cooper Group Inc. for approximately $1.4bn. The deal, which includes mortgage servicing rights and a third-party origination platform, is part of Flagstar's strategic decision to transition into a relationship-focused regional bank. The transaction, expected to close in the fourth quarter, will add 1.3 million customers to Mr. Cooper's portfolio.