Flagstar Bank has reduced its mortgage staff by 20% since the calendar turned to 2022, laying off 420 employees amid a significant drop in origination volumes and margins.
The $7.6 billion deal was originally expected to close in the fourth quarter of last year, but the banks had pushed back their deadline until June. Once the merger is complete, the combined bank will have more than $200 billion in assets.
The Northeastern banks had aimed to wrap up their deal by Feb. 21, but the Federal Reserve the last of the regulatory authorities they need approval from hasn’t signed off yet.
A New York bank with $59.5 billion in assets is preparing to enter the Connecticut market.
New York Community Bank, subsidiary to New York Community Bancorp, has filed an application with the Connecticut Department of Banking seeking permission to take over loan production offices in Rocky Hill and Danbury that are currently operated by Flagstar Bank.