Flagstar Bancorp FBC
("Flagstar" or the "Company"), the holding company for Flagstar Bank, FSB (the
"Bank"), today announced that the Bank has entered into an agreement with the
Federal Home Loan Mortgage Corporation ("Freddie Mac") to resolve
substantially all of the repurchase requests and obligations associated with
loans originated between January 1, 2000 and December 31, 2008 and sold to
Freddie Mac.
The total resolution amount is $10.8 million, but after paid claim credits and
other adjustments, the Bank will pay $8.9 million to Freddie Mac. The amount
of Flagstar's current representation and warranty reserve specific to the
loans covered by the agreement is sufficient to cover the payment amount.
"This agreement is another positive step for Flagstar in further reducing the
Company's risk profile while supporting improved performance," said Alessandro
(Sandro) DiNello, Flagstar's President and Chief Executive Officer. "We
believe that our accomplishments in 2013 have positioned Flagstar for
sustainable long-term growth in 2014 and beyond."
About Flagstar
Flagstar is a full-service financial institution offering a range of products
and services to consumers, businesses, and homeowners. With $11.8 billion in
total assets at September 30, 2013, Flagstar is the largest bank headquartered
in Michigan. Flagstar operates 111 banking centers, all of which are located
in Michigan, and 45 home lending centers located in 19 states, which primarily
originate one-to-four family residential first mortgage loans. Originating
loans nationwide, Flagstar is one of the leading originators of residential
first mortgage loans. For more information, please visit flagstar.com.
Forward Looking Statements
This press release contains "forward-looking statements" within the meaning of
the Private Securities Litigation Reform Act of 1995, as amended.
Forward-looking statements, by their nature, involve estimates, projections,
goals, forecasts, assumptions, risks and uncertainties that are difficult to
predict and could cause actual results or outcomes to differ materially from
those expressed in a forward-looking statement. Forward-looking statements
contained in this press release and any information related to expectations
about future events or results are based upon information available to the
Company as of the date hereof. Forward-looking statements can be identified
by such words as "anticipates," "intends," "plans," "seeks," "believes,"
"expects", "estimates," and similar references to future periods. Examples of
forward-looking statements include, but are not limited to, statements made
regarding the Company's current expectations, plans or forecasts of its core
business drivers, credit related costs, asset quality, capital adequacy and
liquidity, the implementation of the Company's business plan and growth
strategies, the suspension of dividend payments on preferred stock, the
deferral of interest payment on trust preferred securities, the result of
improvements to the Company's servicing processes, the Company's strategy for
outsourcing its non-core default servicing business and other similar
matters. Although we believe that these forward-looking statements are based
on reasonable estimates and assumptions, they are not guarantees of future
performance and are subject to known and unknown risks, uncertainties,
contingencies, and other factors. Accordingly, we cannot give you any
assurance that our expectations will in fact occur or that actual results will
not differ materially from those expressed or implied by such forward-looking
statements. We caution you not to place undue reliance on any forward-looking
statement and to consider all of the following uncertainties and risks, as
well as those more fully discussed in the Company's filings with the
Securities and Exchange Commission ("SEC"), including, but not limited to, our
Form 10-K and Forms 10-Q: volatile interest rates that impact, among other
things, the mortgage banking business, our ability to originate loans and sell
assets at a profit, prepayment speeds and our cost of funds; changes in
regulatory capital requirements or an inability to achieve or maintain desired
capital ratios; actions of mortgage loan purchasers, guarantors and insurers
regarding repurchases and indemnity demands and uncertainty related to
foreclosure procedures; uncertainty regarding pending and threatened
litigation; our ability to control credit related costs and forecast the
adequacy of reserves; the imposition of regulatory enforcement actions against
us; our compliance with the Supervisory Agreement with the Board of Governors
of the Federal Reserve System and the Consent Order with the Office of the
Comptroller of the Currency. Except to the extent required under the federal
securities laws and the rules and regulations promulgated by the SEC, the
Company undertakes no obligation to update any such statement to reflect
events or circumstances after the date on which it is made.
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