Home loans fundings are expected to fall by more than a quarter this year at Flagstar Bancorp Inc.
Last Year, Flagstar reported $32.2 billion in residential originations.
This year, the Troy, Mich.-based lender expects national production to come in between $22 billion and $26 billion.
The forecast was part of a statement released today in response to unusual trading activity in shares of its common stock.
“Although it is generally Flagstar’s practice not to respond to market rumors, management believes that it is appropriate to do so in this case,” the statement said.
Loan sales were also projected at between $22 billion and $26 billion.
Flagstar expects its gain-on-sale margin to be between 100 and115 basis points, while its net interest margin is forecasted at between 1.40 percent and 1.75 percent.