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|Flagstar CEO Replaced After Less Than a Year
Michael Tierney replaced as president, CEO of parent and bank
May 17, 2013
By Mortgage Daily staff
|After spending less than a year on the job, the president and chief executive officer of the eighth biggest residential lender has been replaced.
In its third-quarter 2012 earnings report, Flagstar Bancorp Inc. disclosed that its board of directors had appointed Michael J. Tierney to serve as president and CEO of the bank-holding company and subsidiary Flagstar Bank, FSB.
With $12.4 billion in residential originations, the Troy, Mich.-based company ranked as the eighth biggest U.S. home lender during the first quarter of this year, according to a Mortgage Daily analysis of production data from all of the largest lenders.
But Tierney's tenure as the top executive at Flagstar has come to an end.
On Thursday, Flagstar announced that Alessandro DiNello would immediately replace Tierney and president and CEO of both the bank-holding company and the bank.
Tierney, however, will remain on at the bank as executive vice president, personal financial services -- the job he held prior to the promotion.
In Friday's news release, Tierney called DiNello "a highly respected executive."
DiNello will take Tierney's spot of both boards of directors.
A non-objection to DiNello's appointment has reportedly been received from the Office of the Comptroller of the Currency -- though DiNello's appointment is still subject to the receipt of non-objection from the Board of Governors of the Federal Reserve System.
DiNello started at Flagstar in 1979. He was appointed president and chief administrative officer of the bank in December 2012 and began serving in the role two months ago.
"We are committed to maintaining our position as a top-tier mortgage originator and leading Michigan bank with a strong focus on providing excellent customer service and serving our local communities," DiNello said in the announcement.
Flagstar also reported that Lee M. Smith was named chief operating officer. Smith was a partner with MP Global Advisers III LLC, which is the investment advisor to MP Thrift Investments LP -- Flagstar's largest shareholder. He has reportedly been an outside advisor to Flagstar for two years.
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