Flagstar Bancorp, the nation's sixth largest wholesale originator, lost just $14 million in the third quarter, a sign that it may finally be headed toward the black after years of losses.
However, it noted that legacy credit costs are still impacting its performance.
Company CEO Joseph Campanelli noted it was the thrift's "strongest earnings, before taxes and credit costs, since 2009."
The Troy, Mich.-based company lost $75 million in the second quarter and $23 million in the third quarter of 2010.
The lender, which ranks 11th nationwide in total fundings, suffered $112 million of credit losses during the quarter -- $35 million of it tied to Ginnie Mae loan repurchases.
It funded $7 billion of home mortgages in 3Q, a 56% spike from the second quarter, and almost flat compared to a year ago.
Its gain-on-sale performance increased to $104 million in 3Q from $40 million in the second quarter.
At September 30 it serviced $56.8 billion of home mortgages, just about flat from mid-year.
