Residential originations have fallen by more than half during the past year at Flagstar Bank FSB, while warehouse financing has declined by more than half just since the end of December. The servicing portfolio was also lower.
Home-loan production was $4.330 billion during the first quarter, parent Flagstar Bancorp Inc. reported today. Fundings fell from $6.902 billion during the prior period and sank from $9.500 billion the same quarter during the prior year.
The third-party residential servicing portfolio ended last month at $48.3 billion, falling from $56.5 billion three months earlier as a result of two bulk servicing sales for $10.8 billion. The servicing portfolio was $58.9 billion on March 31, 2009.
In addition Flagstar owned $4.8 billion in first mortgages and $0.2 billion in second mortgages as of the end of the first quarter. First-mortgage holdings were down from $5.0 billion on Dec. 31, while second-mortgages holdings were mostly unchanged.
The bank also held $0.6 billion in warehouse lending assets, tumbling from $1.4 billion at the end of last year.
Commercial mortgage holdings of $1.6 billion and $16 million in construction loans were unchanged from the fourth quarter.
Flagstar Bancorp had a $77 million first-quarter loss before taxes, worse than the $67 million loss three months earlier.
Headcount at the Troy, Mich.-based institution, excluding loan originators and wholesale account executives, eased to 2,927 from 3,075 at the end of December.
Flagstar employed 314 LOs and AEs as of the end of last month, lower than 336 three months earlier and significantly lower than 519 at the end of the first-quarter 2009.
Flagstar operated 23 home loan centers in 14 states as of March 31, the same as in the fourth quarter. In addition, 162 banking centers were in operation, easing from 165.
