New York Community Bancorp has been reaching out to investors for capital to finance a large portfolio of residential mortgages as pressures on the regional lender mount, Bloomberg News reported. The company is seeking third-party capital that would inject liquidity into a portfolio of residential mortgages held under its Flagstar Bank unit. Among the options is a synthetic risk transfer backed by a portfolio of about $5 billion of home loans originated when interest rates were lower, said the people, who asked not to be identified discussing information that isn’t public. In a synthetic securitization, banks offload their exposure to loans by effectively transferring the risk of the assets to the buyer. NYCB also is exploring the sale of a roughly $1 billion portfolio of recreational-vehicle and marine loans. The talks were underway before NYCB reported a surprise loss a week ago that was tied to deteriorating credit quality, and announced a cut to its dividend — moves that sent the bank’s shares sinking. NYCB’s loan-loss provision surged to $552 million in the fourth quarter, more than 10 times analysts’ estimates. NYCB shares, which touched a 27-year low on Tuesday, extended that decline Wednesday after executives tried to reassure investors that its financial position is strong. Deposits have increased since the end of last year and liquidity remains “ample,” the bank said in a statement on Tuesday.
