Flagstar Bancorp, Inc., is a Michigan-based savings and loan holding company founded in 1993. The Company's business is primarily conducted through its principal subsidiary, the Bank, a federally chartered stock savings bank founded in 1987. Its business is conducted through its Mortgage Banking segment, in which it originate or purchase residential first mortgage loans throughout the country and sell them into securitization pools, primarily to Fannie Mae, Federal Home Loan Mortgage Corporation ("Freddie Mac") and Government National Mortgage Association ("Ginnie Mae"). On December 31, 2013, the Company operated 39 home loan centers located in 19 states, which primarily originate one-to-four family residential first mortgage loans as part of its Mortgage Banking segment. The Company's servicing activities include collecting cash for principal, interest and escrow payments from borrowers, assisting homeowners through loss mitigation activities, and accounting for and remitting principal and interest payments to mortgage-backed securities investors and escrow payments to third parties. At December 31, 2013, the Company operated 111 banking centers in Michigan (of which 12 were located in retail stores). Through its banking centers, it gathers deposits and offers a line of consumer and commercial financial products and services to individuals and businesses. It provides deposit and cash management services to governmental units on a relationship basis. The Company's business is comprised of three operating segments - Mortgage Banking, Community Banking and Other. The Mortgage Banking segment originates, acquires, sells and services residential first mortgage loans on one-to-four family residences. It utilize three production channels to originate or acquire mortgage loans: home lending (also referred to as "retail"), as well as brokers and correspondents. The Community Banking segment currently offers a line of financial products and services to individuals, small and middle market businesses, and mortgage lenders. The Other segment includes corporate treasury, tax benefits not assigned to specific operating segments, and miscellaneous other expenses of a corporate nature. The Company competes with other savings banks, commercial banks and credit unions in its local market areas. Money market funds and full-service securities brokerage firms also compete with it for deposits and, in recent years, many financial institutions have competed for deposits through the Internet. As a savings and loan holding company, it is subject to regulation, examination and supervision by the Board of Governors of the Federal Reserve.