Flagstar Financial, the parent company of Flagstar Bank, announced on Friday the appointment of Lee Smith as senior executive vice president and chief financial officer. Smith’s role will be effective Dec. 27.
Per a company press release, Smith’s appointment follows the decision of current CFO Craig Gifford to step down and reengage in personal endeavors outside of the banking industry. To ensure a smooth transition period, Flagstar said that Gifford will remain with the bank through March 31, 2025, and work closely with Smith.
“For more than a decade, Lee has been an instrumental member of Flagstar’s executive team. He is a proven leader with a strong track record, has the requisite experience and expertise, and possesses deep knowledge of the Company,” Joseph M. Otting, Flagstar chairman, president and CEO, said in a statement. “The Board of Directors and I have full faith and confidence in Lee to continue to help guide the Company in this financial leadership position.”
Otting continued by extending a thank you to Gifford.
“His leadership during this time has been invaluable, and we wish him all the best,” he said. “As all of our stakeholders know, we have been working relentlessly to elevate Flagstar to new heights. I also recognize the personal sacrifices and time commitment required away from our personal lives for this journey. Given the substantial progress we’ve made as a Company, I am comfortable that this is a good time for this transition, and I am confident the momentum we’ve gained will only strengthen as we move forward.”
Smith joined Flagstar Bancorp in 2013 as chief operating officer and most recently served as president of mortgage. His prior roles include partner at Matlin Patterson Global Advisers LLC, a private investment firm. Smith has a degree in economics and accountancy from Loughborough University in England.
The company’s leadership shakeup is only one of the numerous changes it has undergone in 2024. In July, Mr. Cooper Group struck a deal to acquire a third-party origination (TPO) platform and $356 billion in mortgage servicing rights (MSRs), advances and subservicing contracts from Flagstar by fourth-quarter 2024.
In October, Flagstar Financial underwent a transition away from its former name, New York Community Bancorp, and it laid off 700 employees ahead of the Mr. Cooper asset deal.
