Bank / Credit Union

Flagstar Bank sells off mortgage business for $1.3B to Mr. Cooper Group

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November 14, 2024

Flagstar Bank, a subsidiary of Flagstar Financial Inc., has sold its residential mortgage servicing/sub-servicing business and third party origination platform to Mr. Cooper Group for approximately $1.3 billion, according to a press release.

With these funds, the bank will increase its CET1 capital ratio by approximately 50 basis points.

"We are very pleased to announce the successful sale of our mortgage serving business and third-party origination platform to Mr. Cooper," Joseph M. Otting, CEO, chairman and president of Flagstar Bank, said in the release. "The completion of this sale reflects another significant milestone toward our strategy to simplify our business model and transform Flagstar into a regional bank focused on the core business of Retail Banking, Commercial and Private Banking, and Commercial Real Estate lending. The Bank will continue to provide residential mortgage products through our retail origination channels and the Private Bank, with particular focus on serving our branch and private banking customers."