Flagstar Bancorp Inc., which had another quarterly loss, saw quarterly originations ease and delinquency jump. But the company said its mortgage market share improved and noted a number of positive developments.
The Troy, Mich.-based company today reported $6.5 billion in fourth quarter residential originations. Volume edged lower from $6.6 billion in the third quarter but increased from $5.1 billion a year earlier.
During all of 2007, production was $25.7 billion, jumping from $19.0 billion for 2006.
"We believe there are a number of positive trends and underlying fundamentals that are currently occurring or are on the horizon," Flagstar President and Chief Executive Officer Mark Hammond said in the report. "These include our increasing market share for mortgage originations, increased residential loan production, improving gain on sale spreads, the potential for higher Fannie Mae, Freddie Mac and FHA loan limits, and increased credit spreads and lower funding costs, which should result in an improving net interest margin."
The mortgage servicing portfolio ended the year at $32.5 billion, according to the data. Mortgage-backed securities held to maturity ended the period at $1.3 billion, while residential mortgage loans held for investment were $5.9 billion.
The company reported that loan delinquency of at least 90 days was 2.42 percent on Dec. 31, jumping from 1.81 percent on Sept. 30.
Flagstar said it had a net loss of $30.1 million in the latest quarter, better than the $32.1 million loss in the third quarter but worse than the $6.9 million net profit a year earlier. A decrease in gain on sales of mortgage servicing rights hurt the year-over-year quarterly decline.
"We will continue to focus on managing through a period of possible further real estate declines and a weakening economy," Hammond explained.
Flagstar employed 3,960 people at yearend, including 877 loan officers and account executives at 143 loan origination centers, according to the report.