Flagstar Bank to lay off 700 workers, more expected after mortgage servicing unit sale

The
sale
of
the
mortgage
servicing
unit
is
just
one
of
the
many
steps
Flagstar
is
taking
to
reposition
itself
within
the
market.
The
bank
operates
over
400
branches,
with
roughly
90
private
banking
teams
located
in
over
10
cities
in
the
metropolitan
New
York
City
region
and
on
the
West
Coast.

“While
these
strategic
actions
involve
difficult
decisions,
including
impacts
on
jobs,
we
believe
they
are
essential
for
strengthening
our
financial
foundation
and
building
a
more
agile,
competitive
company,”
Flagstar
CEO
Joseph
Otting
said.

As
part
of
the
overhaul,
NYCB
plans
to
officially
adopt
the
Flagstar
name
later
this
month,
a
move
that
aligns
with
its
efforts
to
unify
its
operations
under
a
single
brand.
This
rebranding
followed
an
earlier
revamp
of
the
bank’s
branches
and
services,
aimed
at
modernizing
the
company
and
enhancing
its
presence
in
the
market.

Otting,
who
took
the
reins
as
the
bank
faced
scrutiny
over
its
exposure
to
New
York
commercial
real
estate,
has
overseen
efforts
to
stabilize
the
company.
NYCB’s
challenges
have
been
compounded
by
falling
stock
prices
and
the
need
for
a
capital
injection,
which
came
in
part
from
investors
led
by
former
Treasury
Secretary
Steven
Mnuchin.