Flagstar, a Top 20 Ranked Lender, Posts 3Q Loss

Blaming its performance on "several significant credit and asset disposition charges," Flagstar Bancorp Inc., Troy, Mich., lost $62.1 million ($0.79 per share) in the third quarter, compared to a net loss of $32.1 million ($0.53 per share) in the same period last year. The company, which ranks 13th among all residential funders, according to the Quarterly Data Report, suffered $162.7 million (pre-tax) of credit and asset disposition charges during the quarter, including a $17.1 million decrease in loan administration income because of the failure by Lehman Brothers to honor a commitment to purchase $65 million in excess servicing. (Lehman filed for bankruptcy protection this fall.) In 3Q, Flagstar originated $6.7 billion in mortgages, an 18% decline from last year.