Flagstar Bank made several leadership updates to further strengthen its executive management team and support the continued execution of its long-term strategic plan, senior executive development and succession planning.
The board of directors has approved a one-year extension of executive chairman and CEO Joseph M. Otting’s employment agreement in his role as CEO through March 6, 2028.
In addition, Richard Raffetto and Lee Smith will serve as co-presidents and co-chief operating officers, effective immediately. In their expanded roles, Raffetto and Smith will assume additional leadership responsibilities across key operational and strategic functions, further enhancing organizational alignment and continuing momentum across the bank’s business lines. As part of these planned changes, Otting will relinquish the title and role of president, while continuing to serve as executive chairman and CEO.
“This transition is a natural next step in the long-term maturity of Flagstar and capitalizes on the depth of talent we have built across our organization,” Otting said. “By expanding Rich’s and Lee’s roles and elevating them to co-presidents and co-chief operating officers, we are promoting their development and benefiting from the deep bench of talent here while positioning the bank to execute on our strategic plan. I remain fully committed to leading the organization as CEO and executive chairman, and I am confident this structure will strengthen our ability to deliver value and exceptional service for our shareholders, employees, customers and communities.”
Raffetto and Smith have each held senior leadership positions within the bank and bring extensive experience to these expanded roles. Raffetto will become the bank’s chief banking officer and will lead all commercial lending and relationship banking verticals, including commercial real estate, as well as consumer banking and private banking.
Smith will remain chief financial officer overseeing accounting and finance, treasury, investor relations, corporate real estate and vendor management, and mortgage banking. In addition, he will now have oversight for human resources, information technology, and operations. Both Smith and Raffetto will continue to report to the CEO and work closely with the board of directors to support the bank’s long-term strategic vision.
The bank made other leadership changes, effective immediately.
Bao Nguyen, currently general counsel and chief of staff, will become the bank’s chief legal officer and remain chief of staff, reporting to the CEO. The bank’s general counsel, as well as the strategic planning, regulatory affairs, and community investment functions will report to Nguyen. He will add the new role of chief operating officer for consumer and retail banking, and, in this capacity, he will work with Reggie Davis, who will continue to lead Flagstar’s consumer and retail banking business. With the changes in Nguyen’s responsibilities, Peter Sullivan will become the bank’s general counsel and assume day-to-day management of the legal department.
In addition, Sydney Menefee will shift from leading strategic capital and financial management to the role of chief audit executive by the end of June, reporting to the chair of the audit committee and the CEO.
