Mortgage Daily Logo
mortgage news from industry experts

Flagstar Reduces Size of Mortgage Business

Residential loan production declined at Flagstar Bancorp Inc. as mortgage assets were reduced and mortgage staffing was trimmed. While the servicing portfolio expanded, it was still far leaner than a year ago.

During the first three months of this year, Flagstar originated $4.867 billion in mortgages, according to its first-quarter earnings report.

Business tumbled from the previous three-month period, when $6.439 billion in first and second mortgages were closed.

Loan production has plummeted from the same quarter in 2013, when $12.423 billion in residential loans were originated.

The last time Flagstar’s production was this low was in the second-quarter 2011, when just $4.6 billion was funded.

“In a very challenging mortgage environment, we were able to maintain our market share and at the same time increase our gain on sale income,” Flagstar Chief Executive Officer Sandro DiNello said in the report.

Fallout-adjusted mortgage rate lock commitments declined to $4.9 billion in the first quarter from $5.3 billion in the previous period — pointing to further slowing during the current period.

Flagstar said it serviced 174,411 loans for $33.480 billion as of the end of last month.

The residential loan servicing portfolio increased from 159,482 mortgages for $30.118 billion as of Dec. 31, 2013. But the portfolio has plunged from for $78.648 billion as of March 31, 2013.

Last month’s total included $28.999 billion in mortgages serviced for others.

Residential assets closed out the first quarter at $2.787 billion. Flagstar cut this asset class from $2.968 billion at the end of last year and $3.272 billion at the same point in 2013.

Last month’s mortgage assets included $2.349 billion in first mortgages, $0.165 billion in second mortgages and $0.273 billion in home–equity lines of credit.

Warehouse lending assets slipped to $409 million from $424 million and tumbled from $751 million at the end of the first-quarter 2013.

Commercial real estate loans on the books grew to $0.513 billion from $0.409 billion but were off from $0.563 billion as of March 31, 2013.

At Flagstar Bancorp, there was a $118 million first-quarter loss before income taxes, not as bad as the $248 million fourth-quarter 2013 loss. Earnings swung from a $24 million profit one year earlier.

Flagstar employed 315 loan officers and account executives, reducing its ranks from 359 at the end of last year and 322 one year prior.

Across all of Flagstar, staffing closed out the first quarter at 2,798. Headcount was cut from 3,253 three months earlier and 3,778 twelve months earlier.

The number of loan origination centers was 33, down six from Dec. 31.

Bank branch count was down by five to 106.

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 home closing documents have 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...

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 mortgage...

Newsletter

Don’t worry, we don’t spam

calculate your monthly mortgage payment

Related Topics

Helpful Links

Daily mortgage rate trends

Best mortgage lenders

First-time homebuyers programs by state

Loan limits by state

Types of mortgages

APR vs interest rate

Understanding PMI

Related Posts

THE TRUSTED PROVIDER OF ACCURATE RATES AND FINANCIAL INFORMATION