New York Community Bank (NYCB) reported its second consecutive quarterly loss, grappling with investor fears and rising multifamily delinquencies, which surged 767% from the previous quarter. The bank sold its residential mortgage servicing business for $1.4 billion and $5.9 billion in mortgage warehouse loans to JPMorgan Chase to boost liquidity. NYCB’s stock dropped 17% following these announcements. CEO Joseph Otting outlined efforts to re-underwrite loans and reevaluate its commercial real estate portfolio. Despite a liquidity position of $40 billion, NYCB continues damage control to regain investor confidence and stabilize its operations.
New York Community Bank
