Potential buyers include Annaly Capital and Two Harbors, says KBW
- New York Community Bancorp may raise capital by selling mortgage-servicing rights
- Stock price of New York Community Bancorp dropped 23% in previous session
- Sale of mortgage-servicing rights could boost bank’s CET1 ratio by 10 to 15 basis points
- Potential buyers include Annaly Capital Management and Two Harbors Investment Corp.
- Financial companies more likely to be buyers than operating companies
- New York Community Bancorp operates one of the largest mortgage subservicers in the U.S.
- Bank has faced bad news including accounting protocol weaknesses and delayed financial filings
- Stock price of New York Community Bancorp has fallen 73% this year
New York Community Bancorp is considering selling its mortgage-servicing rights to raise capital and strengthen its balance sheet, according to analysts at KBW. The bank’s stock price has dropped significantly, and it needs to raise more capital to meet regulatory requirements. The sale of the mortgage-servicing rights could potentially boost the bank’s CET1 ratio. Potential buyers for the rights include Annaly Capital Management and Two Harbors Investment Corp. Financial companies are more likely to be buyers than operating companies. New York Community Bancorp operates one of the largest mortgage subservicers in the U.S. However, the bank has faced challenges including accounting protocol weaknesses and delayed financial filings, leading to a significant decline in its stock price this year.
Factuality Level: 7
Factuality Justification: The article provides a detailed analysis of New York Community Bancorp’s potential strategy to raise capital by selling mortgage-servicing rights. It includes information from analysts at KBW, details about the bank’s stock performance, potential buyers for the mortgage-servicing rights, and the impact on the bank’s CET1 ratio. The article does not contain significant digressions, misleading information, sensationalism, or bias. It presents the information in a clear and objective manner, making it informative and factually sound.
Noise Level: 3
Noise Justification: The article provides a detailed analysis of New York Community Bancorp’s potential strategy to raise capital by selling mortgage-servicing rights. It includes information on the bank’s stock performance, regulatory requirements, potential buyers, and the impact on the bank’s CET1 ratio. The article stays on topic and supports its claims with data and examples. However, it contains some repetitive information and could benefit from more in-depth analysis on the long-term implications of such a strategy.
Financial Relevance: Yes
Financial Markets Impacted: New York Community Bancorp
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: No
Rating Justification: The article discusses New York Community Bancorp’s potential need to raise capital to strengthen its balance sheet and cover potential loan losses. This information is relevant to financial markets and the company itself.
Public Companies: New York Community Bancorp (NYCB), Mr Cooper Group (COOP), Rithm Capital Corp (RITM), Annaly Capital Management Inc. (NLY), Two Harbors Investment Corp. (TWO), JPMorgan Chase & Co. (JPM)
Key People: Christopher McGratty (Analyst at KBW), Bose George (Analyst at KBW), Alexander Bond (Analyst at KBW), Philip van Doorn (Contributor to the article)
Reported publicly:
www.marketwatch.com 
