Flagstar Made More Loans, Less Money in 2008
January 30, 2009 – Flagstar Bancorp reported today that loan volume was higher in 2008 than 2007 but earnings for the fourth quarter were down significantly. Residential loan production last year was $28.0 billion, nine percent higher than $25.7 billion reported for 2007. Yet in the fourth quarter, Flagstar funded only $5.4 billion, down from $6.7 billion in the third quarter and $6.5 billion in 2007.
The portfolio of mortgages serviced for others ended last year at $55.9 billion, increasing from $51.8 billion on Sept. 30 and $32.5 billion on Dec. 31, 2007. Flagstar said it earns 33 basis points for its servicing fee.
Flagstar had a $257 million loss for 2008 up from a $39 million loss for 2007. Fourth-quarter losses were $200 million, worsening from a $62 million third-quarter loss and a $30 million loss in 2007.
Flagstar disclosed that it will receive $267 million in TARP money and $250 million from MP Thrift Investments L.P., which has committed to another $100 million in equity investments during the first quarter.
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