New York Community joins bank exodus from home mortgages

Mortgage

New York Community Bancorp in Westbury, N.Y., an active and prominent multifamily and commercial real estate lender, is quitting the single-family mortgage business.

The $49 billion-asset company has agreed to sell its mortgage banking business in addition to assets covered by loss-share agreements with the Federal Deposit Insurance Corp. to two different companies. After the exit, it will refer customer requests for home mortgages to a third party, as it did before the 2009 acquisition of AmTrust Bank. “From our customers’ perspective, nothing will change,” a spokeswoman said. (The third party is yet to be determined.)

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