{"id":214248,"date":"2025-09-10T01:14:24","date_gmt":"2025-09-10T01:14:24","guid":{"rendered":"https:\/\/www.europesays.com\/us\/214248\/"},"modified":"2025-09-10T01:14:24","modified_gmt":"2025-09-10T01:14:24","slug":"flagstar-ceo-says-nyc-banks-must-face-mamdani-reality","status":"publish","type":"post","link":"https:\/\/www.europesays.com\/us\/214248\/","title":{"rendered":"Flagstar CEO says NYC banks must face Mamdani reality"},"content":{"rendered":"<p data-uri=\"www.audacy.com\/_components\/paragraph\/instances\/cmfczfvph003t01wf5h64vp23@published\" data-editable=\"text\" class=\"paragraph paragraph--station\"><strong>NEW YORK (BLOOMBERG) &#8212; <\/strong>Flagstar Financial Inc. Chief Executive Officer Joseph Otting is preparing for Zohran Mamdani\u2019s New York City.<\/p>\n<p data-uri=\"www.audacy.com\/_components\/paragraph\/instances\/cmfczk67o0011357t5zr9cdtd@published\" data-editable=\"text\" class=\"paragraph paragraph--station\">Mamdani, the Democratic Socialist who\u2019s the frontrunner in New York\u2019s mayoral race, has centered his campaign on making housing affordable and proposed freezing rents. That has caught the attention of firms like Flagstar, a major lender to owners of apartment buildings in the city.<\/p>\n<p data-uri=\"www.audacy.com\/_components\/paragraph\/instances\/cmfczk69k0012357tzm30zkfy@published\" data-editable=\"text\" class=\"paragraph paragraph--station\">\u201cI think Mamdani has ran an unbelievable campaign,\u201d Otting, the former US comptroller of the currency, said Tuesday at the Barclays Global Financial Services Conference. \u201cWe all have to live with the reality as he could become the mayor of New York City.\u201d<\/p>\n<p data-uri=\"www.audacy.com\/_components\/paragraph\/instances\/cmfczk6ac0013357tg37jaevi@published\" data-editable=\"text\" class=\"paragraph paragraph--station\">Otting said the bank found a \u201ca number of downgrades\u201d in credit quality in its portfolio of rent-regulated apartment building loans last year. But this year, based on data from 2024, the portfolio has held up better, he said.<\/p>\n<p data-uri=\"www.audacy.com\/_components\/paragraph\/instances\/cmfczk6az0014357tiejh6l4z@published\" data-editable=\"text\" class=\"paragraph paragraph--station\">\u201cWhat\u2019s happened in that business is you basically had your revenue hedged, but your expenses unhedged \u2014 the exact opposite of what you\u2019d want to look like,\u201d he said. \u201cInsurance rose, HVAC systems were up \u2014 a lot of things drove costs up.\u201d<\/p>\n<p data-uri=\"www.audacy.com\/_components\/paragraph\/instances\/cmfczk6cm0015357t7oz35o6h@published\" data-editable=\"text\" class=\"paragraph paragraph--station\">Flagstar carried almost $10 billion of loans to apartment buildings that are at least 50% rent-regulated as of midyear, according to a July\u00a0<a href=\"https:\/\/s203.q4cdn.com\/110803960\/files\/doc_financials\/2025\/q2\/2Q25-Earnings-Presentation_vf.pdf\" rel=\"nofollow noopener\" target=\"_blank\">presentation<\/a>. Otting said he expects that number to decline over the next two years as the bank largely stopped making new loans against rent-regulated buildings after he joined the bank in 2024.<\/p>\n<p>\n          Featured Image Photo Credit: Chip Somodevilla\/Getty Images, Michael M. Santiago\/Getty Images\n        <\/p>\n","protected":false},"excerpt":{"rendered":"NEW YORK (BLOOMBERG) &#8212; Flagstar Financial Inc. Chief Executive Officer Joseph Otting is preparing for Zohran Mamdani\u2019s New&hellip;\n","protected":false},"author":3,"featured_media":214249,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5122],"tags":[5229,405,403,5226,5225,5228,5227,67,586,132,5230,68,2969],"class_list":{"0":"post-214248","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-new-york","8":"tag-america","9":"tag-new-york","10":"tag-new-york-city","11":"tag-newyork","12":"tag-newyorkcity","13":"tag-ny","14":"tag-nyc","15":"tag-united-states","16":"tag-united-states-of-america","17":"tag-unitedstates","18":"tag-unitedstatesofamerica","19":"tag-us","20":"tag-usa"},"share_on_mastodon":{"url":"https:\/\/pubeurope.com\/@us\/115177354959313630","error":""},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/posts\/214248","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/comments?post=214248"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/posts\/214248\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/media\/214249"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/media?parent=214248"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/categories?post=214248"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/tags?post=214248"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}