09:06 AM EDT, 07/25/2024 (MT Newswires) -- Mr. Cooper Group ( COOP ) said Thursday it has agreed to acquire the mortgage operations of Flagstar Bank, a unit of New York Community Bancorp ( NYCB/PU ) , for $1.4 billion in cash.

Mr. Cooper ( COOP ) said the acquisition includes mortgage servicing rights, advances, subservicing contracts, and a third-party origination platform.

The deal, expected to close in Q4, is expected to add 1.3 million customers with about $356 billion in unpaid principal balances, the company said.

New York Community Bancorp ( NYCB/PU ) said the transaction is expected to increase its Common Equity Tier 1 capital ratio by 60 basis points.

NYCB said it plans to maintain its provision of residential mortgage products to retail and private wealth customers, transitioning to a regional banking model.

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