Reuters Regional lender New York Community Bancorp said on Monday it had closed the sale of about 5.9 billion in mortgage warehouse loans to Wall Street giant JPMorgan Chase.

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 NYCB39;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.

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 at the face value, NYCB said.

The deal upon closing is expected to add about 70 basis points to NYCB39;s CET1 capital ratio.

Reporting by Arasu Kannagi Basil in Bengaluru; Editing by Alan Barona

Source Reuters