NYCB’s Flagstar sells rate-sensitive residential mortgage unit for $1.4 billion By Reuters

(Reuters) – New York Community Bancorp (NYSE:)’s unit Flagstar Bank is selling its residential mortgage servicing business to non-bank mortgage platform to Mr. Cooper for nearly $1.4 billion, it said on Thursday.

“While the mortgage servicing business has made significant contributions to the Bank, we also recognize the inherent financial and operational risk in a volatile interest rate environment,” NYCB CEO Joseph Otting said.

The bank also posted a loss of $333 million, or $1.14 per share, in the three months ended June 30, comapared with a profit of $405 billion, or $1.66 per share, last year.