July 22 (Reuters) -

Regional lender New York Community Bancorp ( NYCB/PA ) said on

Monday it had closed the sale of about $5.9 billion in mortgage

warehouse loans to Wall Street giant JPMorgan Chase ( JPM ).

The bank said it expects to close on an additional $200

million of mortgage warehouse loans in the near future, once

necessary customer approvals are received.

The deal bolsters NYCB's liquidity and capital as the

lender executes a crucial turnaround to return to profitability

over the next two years.

In May, the bank announced it had agreed to sell about

$5 billion in mortgage warehouse loans to JPMorgan ( JPM ).

Warehouse loans are lines of credit given to lenders who

can use the funds to provide mortgages. They are repaid when the

mortgage lender sells the loans to an investor.

The loans were sold to JPMorgan Chase ( JPM ) at the face value,

NYCB said.

The deal upon closing is expected to add about 70 basis

points to NYCB's CET1 capital ratio.