New York Community pledges $28B to back underserved

New York Community Bancorp in Hicksville, N.Y., has committed $28 billion of loans, investments and other financial support to underserved communities as part of its planned purchase of Flagstar Bancorp in Troy, Mich. 

The $58 billion-asset New York Community said in a Monday press release that it had made the pledge as part of an agreement with the National Community Reinvestment Coalition. 

The agreement includes $21.7 billion of community lending and affordable-housing commitments and $6 billion of residential mortgages to underserved and low- and moderate-income borrowers and majority-minority neighborhoods over five years.

Specifically, the company will originate $5.7 billion of loans for home purchases, refinances, home improvement, and home equity loans, along with a $10 million downpayment assistance fund. The agreement calls for $542 million of small-business loans. 

New York Community will also commit $16.5 million in philanthropic support to nonprofits that meet the needs of low- and moderate-income groups and majority-minority communities and individuals. 

“Over the past several months, members of both NYCB’s and Flagstar’s leadership teams have met with NCRC and nearly 80 of its member organizations and were humbled by everything they do for their communities,” Thomas Cangemi, New York Community’s chairman, president and CEO, said in the release. 

The agreement “reflects our commitment to provide greater economic opportunities for LMI communities and communities of color in both of our market areas and bridge the racial wealth gap that exists today,” Cangemi added. 

New York Community agreed to buy Flagstar last April. 

New York Community said in October that it expected the deal to close early this year, a delay compared to the original forecast of a late 2021 completion.