Flagstar Sees Warehouse Commitments Rise 31%

Flagstar Bank saw its warehouse lending commitments to nonbanks rise 31% in the third quarter to $1.48 billion, according to figures compiled by NMN. The thrift, one of the largest remaining S&Ls in the nation, is part of a shrinking base of depositories willing to extend credit to mortgage banking firms. However, its stock continues to trade for less than $1 a share. Despite raising nearly $620 million in capital this year, the $14.8-billion-asset company earlier in the week said it would be turning to shareholders for as much as $500 million through a rights offering. The fresh capital is likely needed to satisfy regulators, who have limited the Troy, Mich., company's ability to grow and imposed other restrictions on it. Among wholesale lenders, it ranks eighth, according to the Quarterly Data Report.