Rescued New York Community Bank to lay off 700 at its Flagstar subsidiary

Struggling New York Community Bancorp said it's cutting 700 jobs at its Flagstar subsidiary as it tries to return to profitability after being rescued by investors earlier this year. The bank said Friday that the cuts amount to 8% of its head count. It’s also selling its mortgage-servicing business to mortgage company Mr. Cooper, which will mean trimming another 1,200 employees from its payroll. It said most of those employees will be offered the chance to transfer to Mr. Cooper. Shares of Hicksville, New York-based NYCB fell 1.6% Friday. NYCB got a lifeline of more than $1 billion from a group of investors in March of this year its stock plunged.