New York Community Bancorp, Inc. is exploring the option of selling its portfolio of residential loans in order to reduce its mortgage risk amid mounting troubles. Per a Bloomberg report, citing people familiar with the matter, the company is seeking third-party capital for a portfolio of residential mortgages held under its Flagstar Bank unit.
The company may opt for a synthetic risk transfer, backed by a portfolio of $5 billion of home loans originated when interest rates were lower. Notably, in synthetic securitization, banks reduce their exposure to loans by effectively transferring the risk of the assets to the buyer.
According to some other people, NYCB is also exploring the sale of a roughly $1-billion portfolio of recreational vehicle and marine loans. However, the talks are preliminary and details could change.
To continue reading the rest of the article, please click on the source link below:
https://www.zacks.com/stock/news/2224266/new-york-community-nycb-explores-selling-residential-mortgages
© 2010-19 FORECLOSURE FRAUD | by DinSFLA. All rights reserved.
