Flagstar Bancorp Inc. improved production in the last three months of 2006, though earnings nosedived.
Residential loan volume was $5.1 billion during the fourth quarter, the Troy, Mich.-based lender announced. Originations rose from the previous quarter's $4.6 billion but were lower than the $5.6 billion reported for the fourth quarter 2005.
Throughout 2006, Flagstar originated a total of $19.0 billion in residential loans, off from $28.2 billion a year earlier, according to the announcement.
The mortgage servicing portfolio reportedly edged up from the third quarter to end the year at $15.0 billion.
Flagstar said it employed 444 loan officers and account executives at the year's end.
Last quarter's net earnings of $6.9 million sank from the third quarter's $20.8 million and from the same period a year earlier due to, "among other factors, lower net interest income, a one-time charge of $8.7 million resulting from a fidelity bond coverage dispute and a reduction in gain on sale of mortgage servicing rights," the banker said.