Hunton Andrews Kurth Represents Flagstar Bank in the Sale of Its Residential Mortgage Servicing Business

Hunton Andrews Kurth LLP represented Flagstar Bank, N.A., the bank subsidiary of New York Community Bancorp, Inc. (NYSE: NYCB), in a definitive agreement to sell its residential mortgage servicing business, including mortgage servicing rights and the third-party origination platform, to Mr. Cooper (NASDAQ: COOP), a leading non-bank mortgage originator and servicer for approximately $1.4 billion. The transaction is expected to close during the fourth quarter of 2024.

Flagstar Bank operates over 400 branches, including a significant presence in the Northeast and Midwest and locations in high-growth markets in the Southeast and West Coast. Flagstar Mortgage operates nationally through a wholesale network of approximately 3,000 third-party mortgage originators. In addition, the Bank has approximately 90 private banking teams located in over ten cities in the metropolitan New York City region and on the West Coast, serving the needs of high-net worth individuals and their businesses.

The Hunton Andrews Kurth team advising on the matter was led by M&A partners Michael Goldman and Austin Maloney with associates Marissa Rogers and Charles Matthews. The securitization/MSR transaction was led by partners Rudene Haynes, Michael Nedzbala and Shannon Daily. The team also included partner Mayme Donohue for securities; partner Ryan Glasgow and associate Tyler Laughinghouse for labor; partner J.C. Chenault for real estate; partner John Gary Maynard and counsel Mathew Ricciardi for intellectual property; partner Michelle Lewis and associate Tyler Richardson for employee benefits; partner Adam Solomon for data privacy; partner Kevin Hahm and associate Bennett Sooy for antitrust; and partner Alexander McGeoch and associate Caitlin Scipioni for tax.

Hunton Andrews Kurth has represented financial services clients in M&A and other strategic transactions worth more than $11.5 billion in the past 12 months. The firm has particular experience serving mortgage industry clients in M&A and securitization transactions.