$8.7 billion funded in 4th quarter
By MortgageDaily.com staff
1/12/2005

Flagstar Bancorp's annual volume was off by over one-third, but the fourth quarter was another story.

The Troy, Mich.-based lender reported fourth quarter production of $8.7 billion jumped 28% from the previous quarter.

In all of 2004, however, Flagstar closed $34.0 billion in residential loans -- down 38% when compared to the record-breaking $56.4 billion reported in 2003.

While the quarterly increase was in line with Flagstar's projections, company chief executive Mark Hammond noted that "fierce price competition" diminished the margin on its loan sales, thus "management believes that the less than anticipated gain on sale spread will result in [its] net earnings to be lower than previously forecasted."

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