Originations soared to new heights for Flagstar Bancorp, Inc., this quarter, the company reported.
In its second quarter 2003 earnings statement, released last week, Flagstar reported $17.5 billion in residential loan production, up from about $15 billion in the prior quarter. For the month of June, production reached a new record of $6.5 billion, the company said. May's production volume totaled $5.3 billion, down from April's $5.6 billion, according to company releases.
"The second quarter was our best quarter ever in our mortgage banking operation. We had record monthly originations in June and we begin the third quarter with a record pipeline of locked loans," said Mark T. Hammond, president and chief executive officer.
The company reported a gain on sale profit margin of 90 basis points, compared to 37 basis points in second quarter 2002.
"...our 90 basis point profit margin on loan sales was well above expectations. We expect profit margins to normalize around 60 basis points," Hammond said.
Gains on the sales of mortgage loans totaled $155.9 million for the quarter, a record, the company said.
Hammond also predicted a slowdown in production for the second half of 2003, to a monthly volume of about $4.5 billion.
The Michigan-based bank reported $29 billion in loans serviced for others at the end of June, up $6.7 billion from first quarter's end. A record $24.7 million in revenue was reported from the portfolio.
Non-performing loans totaled $69.7 million, down about $12 million from the prior quarter, the company said. Of these, 95 percent were reported to be on single-family residences.