Quarterly mortgage volume fell once again at Flagstar Bancorp, but this was no surprise for management.
The Michigan-based lender announced Friday third quarter mortgage loan production of $6.8 billion -- down 24% from the second quarter. Fundings, which have been off for two consecutive quarters, were much higher at this time last year at $16.0 billion.
Flagstar's president and chief executive said the volume was in line with its expectations as the market is "more normalized" than last year when rates hit historical lows. He added that the company, however, continues to increase the size of its retail banking presence.
The residential lender's announcement did not disclose its total of rate lock commitments at the end of the quarter, which are a general indication of the level of mortgage production that can be expected in the near term. In the second quarter, this total had decreased by more than half from the first three months of the year.