New York Community Bancorp may be able to raise capital to strengthen its balance sheet and cover potential loan losses by selling mortgage-servicing rights, analysts at KBW said on Tuesday. With it stock price tumbling and a portfolio of office properties and multifamily loans under stress, New York Community Bancorp
NYCB,
-23.10%
potentially needs to raise more capital to meet regulatory balance sheet requirements for banks with $100 billion or more of assets.
KBW analysts Christopher McGratty, Bose George and Alexander Bond said in a late Monday research note that the bank could tap into its $78 billion in unpaid balances of mortgage-servicing rights to raise capital through a potential sale. The portfolio has a carrying value of $1.1 billion, analysts said. New York Community Bancorp’s stock was up by nearly 4% in premarket trading on Tuesday, after dropping 23% in the previous session. KBW analysts estimated that the sale of the mortgage-servicing rights could boost the bank’s common equity tier one (CET1) ratio by 10 to 15 basis points. The CET1 ratio is one key measure regulators use to weigh a bank’s liquidity and strength to face potential challenges. KBW lists potential buyers of the New York Community Bancorp’s Fannie Mae and Freddie Mac mortgage-servicing rights including Mr Cooper Group
COOP,
-0.63%,
Rithm Capital Corp
RITM,
-1.64%,
Annaly Capital Management Inc.
NLY,
-0.83%,
…
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NYCB,
-23.10%
potentially needs to raise more capital to meet regulatory balance sheet requirements for banks with $100 billion or more of assets.
KBW analysts Christopher McGratty, Bose George and Alexander Bond said in a late Monday research note that the bank could tap into its $78 billion in unpaid balances of mortgage-servicing rights to raise capital through a potential sale. The portfolio has a carrying value of $1.1 billion, analysts said. New York Community Bancorp’s stock was up by nearly 4% in premarket trading on Tuesday, after dropping 23% in the previous session. KBW analysts estimated that the sale of the mortgage-servicing rights could boost the bank’s common equity tier one (CET1) ratio by 10 to 15 basis points. The CET1 ratio is one key measure regulators use to weigh a bank’s liquidity and strength to face potential challenges. KBW lists potential buyers of the New York Community Bancorp’s Fannie Mae and Freddie Mac mortgage-servicing rights including Mr Cooper Group
COOP,
-0.63%,
Rithm Capital Corp
RITM,
-1.64%,
Annaly Capital Management Inc.
NLY,
-0.83%,
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