Mortgage Daily Logo

Flagstar Reports Strong Originations

Mortgage News

Unlike many of its competitors, Flagstar Bancorp Inc. was able to increase residential loan production from a year earlier. The company grew its servicing portfolio while selling off branches and cutting staff.

First-mortgage originations during the last three months of 2011 totaled $10.187 billion, according to fourth-quarter earnings data.

Business leapt from just $6.926 billion closed in the third quarter.

And while many of Flagstar’s mortgage lending rivals saw a fourth-quarter year-over-year decline, the Troy, Mich.-based company was able to raise its originations from $9.165 billion funded during the fourth-quarter 2010.

Refinances accounted for 79 percent of fourth-quarter volume, growing from a 63 percent share in the previous period.

A precursor to upcoming production, mortgage rate lock commitments, fell to $11.2 billion from the third quarter’s $13.1 billion pipeline.

For all of last year, originations came in at $26.613 billion, slightly exceeding the $25.561 billion closed during 2010.

The third-party mortgage servicing portfolio grew to $63.771 billion as of the end of December from $56.773 billion as of the end of September. The company serviced $56.040 billion for others as of Dec. 31, 2010.

The mortgage servicing system used for first mortgages was converted to “a nationally recognized loan servicing platform” during the fourth quarter.

Flagstar owned $4.111 billion in residential assets as of the end of last month. Holdings fell from $4.207 billion at the end of September but slipped from $4.239 billion at the same point in the previous year.

The latest residential total included $3.750 billion in first mortgages, $0.139 billion in second mortgages and $0.222 billion in home-equity lines of credit.

An additional $1.174 billion in warehouse lending assets were on the books, growing from $0.996 billion at the end of the third quarter and $0.721 billion at the end of the prior year.

Commercial real estate loans slipped to $1.243 billion from $1.269 billion and were $1.250 billion at the end of 2010.

The reserve for representations and warranties was raised to $120 million as of Dec. 31, 2011, from $85 million as of Sept. 30. Outstanding repurchase demands fell to $343 million from the third quarter’s $352 million.

Flagstar noted in the report that Fannie Mae and Freddie Mac have moved from issuing repurchase demands primarily on foreclosed loans to demanding repurchases on delinquent loans that have not yet converted to real estate owned. Flagstar says that the more aggressive pattern “is an indication of acceleration of repurchase demands on a relatively static population by the GSEs.”

Losses at the holding company before federal income taxes were $42 million, worsening from the $9 million loss in the third quarter but an improvement from the $186 loss in the fourth-quarter 2010.

“Our results for the fourth quarter and full year 2011 reflect near-record revenues from our mortgage banking business, significant growth in net interest margin, de-risking of our balance sheet through building of reserves, and the benefits of our continuing transition to a full-service commercial bank,” Flagstar Chairman, President and Chief Executive Officer Joseph P. Campanelli said in the report.

Loan officers and account executives employed at Flagstar fell to 297 from 306 people at the end of September. The mortgage sales staff grew, however, from 278 employees as of Dec. 31, 2010.

Including all employees at Flagstar Bancorp, headcount closed out 2011 at 3,136 people, down from 3,299 as of Sept. 30 and 3,279 as of the end of 2010.

Flagstar operated 27 home loan centers in 13 states as of the end of last year, down from 29 centers as of Sept. 30 but the same as a year earlier.

Following the sale 22 Indiana branches to First Financial Bank, N.A., and the sale of 27 Georgia branches to PNC Bank, N.A., the company branch count finished last year at 113, down from 162 branches as of the end of the third quarter and as of the end of 2010.

Related Posts

Centex Home Equity Announces Name and Brand Change to National Mortgage, LLC

Third-Quarter 2012 Mortgage Litigation Index

Lawsuits involving excessive fees, servicing fees and loan fees beyond state maximums. Defendant Plaintiff Court Amount Overview Case Title Case Number Date Filed Date of Activity Link to Story Fannie Mae and Freddie Mac Orangeburg County, Richland County, South...

Centex Home Equity Announces Name and Brand Change to National Mortgage, LLC

Net Branch Lawsuits

Litigation involving net branch operations. Defendant Plaintiff Court Amount Overview Case Title Case Number Date Filed Date of Activity Link to Story PHH Mortgage Corp. Mathews Supreme Court of Virginia na Court held that the term "branch office" includes not only...

Centex Home Equity Announces Name and Brand Change to National Mortgage, LLC

Whistleblower Lawsuits

Litigation related to loan servicing, including escrow issues, transfer of servicing and servicing borrowers in bankruptcy and foreclosure.   Defendant Plaintiff Court Amount Overview Case Title Case Number Date Filed Date of Activity Link to Story Bank of...

Popular posts

How Long Does It Take to Refinance a Mortgage
How Long Does It Take to Refinance a Mortgage

So, you’re interested in refinancing your mortgage. Maybe you want some extra capital to do that home project you’ve always dreamed of, interest rates are nearing record lows, or you want to start consolidating debt. Regardless of the motivation behind the refinance,...

How Does Refinancing a Mortgage Work
How Does Refinancing a Mortgage Work

A home purchase is considered an investment, and a robust one at that. Savvy owners are constantly looking for new ways to reduce debt, save money, pay less in interest, and ultimately build equity. Refinancing is one way to leverage your investment and do just that....

What Does It Mean to Refinance Your Home
What Does It Mean to Refinance Your Home

You can think of refinancing your mortgage as a debt redo. Essentially, you’ll swap out the existing loan for a new one - ideally with better terms and conditions. Only this time it could help you save money on high mortgage payments, rather than just borrow it....

Setting up the Utilities in My New House
Setting up the Utilities in My New House

All the tedious, time-consuming paperwork has been signed, sealed, and delivered. Your belongings are packed into what seems like a million boxes and you have a solid plan to haul all your existing furniture to the new place. Just as your boxes and furniture need to...

When Is My First Mortgage Payment Due?
When Is My First Mortgage Payment Due?

Navigating your way through a brand-new mortgage loan can be a difficult task, especially for first-time homeowners.   After handing over a large sum of money for the down payment and closing costs, it’s important to pay attention to the timing of your first...

Newsletter

Don’t worry, we don’t spam