A rent freeze could lower the value of Flagstar’s multi-family housing loans, though the extent of the potential impact is unclear.
Zohran Mamdani, who is now the likely favorite to win the general election in November, promised to freeze rent increases in stabilized units during his campaign.
The New York City mayor has the power to appoint representatives to the regulatory board that oversees rent-controlled apartments.
Flagstar, previously known as New York Community Bancorp, faced pressure last year in part due to its real estate exposure.
Shares of New York regional bank Flagstar slid 6% on Wednesday after the apparent victory of Zohran Mamdani in the New York City Democratic mayoral primary.
Flagstar is the rebranded name of New York Community Bancorp, which came under pressure in 2024 in part due to its real estate exposure. Former Treasury Secretary Steven Mnuchin led a $1 billion investment into the company in March of that year.
Mamdani, who is now the likely favorite to win the general election in November, promised to freeze rent increases in stabilized units during his campaign.
