NYCB Receives OCC Approval for Flagstar Merger and National Charter

New York Community Bank (NYCB) received approval from the Office of the Comptroller of the Currency in late October 2022 to proceed with its merger with Flagstar Bank and convert from a state charter to a national bank charter. The merger, which still awaited Federal Reserve approval at the time, would combine two significant banking institutions into a larger national platform. Flagstar Bank had existing fintech and mortgage technology partnerships that would carry over to the combined entity.

The OCC's approval addressed the charter conversion component of the transaction, while the Fed's review focused on holding company considerations. The combined institution was expected to have greater scale to invest in technology and potential BaaS-adjacent services. The transaction deadline and regulatory timeline were key factors being tracked by the industry.

Financial terms of the merger had been previously disclosed when the deal was originally announced.