Flagstar Bancorp Inc., Troy, Mich., lost $192 million in the fourth quarter of 2010, compared with a loss of $23 million in the third quarter of that year and a loss of $72 million for the fourth quarter of 2009.
The fourth quarter represented nearly half of Flagstar's losses for 2010, because for the full year, the company lost $394 million, an improvement over the loss of $514 million for 2009.
During the fourth quarter, Flagstar took a loss of $177 million on the sale of $74 million of non-performing residential mortgages. It also transferred $104 million of similar loans to its available for sale portfolio and marked them to fair value.
Flagstar did have $9.2 billion of residential mortgage loan volume in the fourth quarter, up from $7.6 billion in the third quarter and $7.1 billion for the fourth quarter 2009. Gain on loan sales fell to $80 million from $103 million in the third quarter and $97 million for the fourth quarter 2009.
For the full year, Flagstar had loan production of nearly $27 billion, of which nearly $16 billion came from the correspondent channel, $9 billion from wholesale and $2 billion from retail.
At Dec. 31, 2010, the Flagstar servicing portfolio was $56 billion with a weighted average servicing fee of 30.8 basis points; one year prior, the portfolio was $56.5 billion with a weighted average servicing fee of 32.1 BPs.
Net servicing revenue increased from $23 million for the third quarter to $28 million in the fourth.
