New York Community Bancorp Has a Hidden Risk No One Is Talking About

New York Community Bank has long been the leading lender for rent-regulated apartments in New York City and that portfolio could get increasing scrutiny from investors due to financial pressures on landlords. New York Community Bancorp surprised Wall Street Wednesday when it reported a loss of $260 million, or 36 cents a share, in the fourth quarter as it added $552 million to its loan-loss provisions mostly related to real estate loans. The added reserves reflected weakness in the office sector and what the company referred to as “loan repricing risk” in the multifamily loan book, an apparent reference to the impact of higher loan rates on borrowers.