Mortgage production slid for the second consecutive quarter at Flagstar Bancorp Inc. as the lender cut 14% of its salesforce.
The Troy, Mich.-based lender announced Thursday it closed $4.3 billion in residential mortgage loans during the first quarter, off $1.3 billion from the prior three-month period and $2.9 billion below the level a year earlier.
The mortgage servicing portfolio edged down to $29.2 billion as of March 31, 2006. Loan delinquency fell 9 basis points from the previous quarter to 1.01%, Flagstar said.
During the first quarter, Flagstar reportedly reduced its number of loan officers and account executives by 95 to 594.
Net earnings declined to $18.9 million from $22.8 billion in the fourth quarter, according to the announcement.