Flagstar Sub Issues $600M Securitization

Flagstar Bancorp Inc., a major residential mortgage originator based in Troy, Mich., has reported the private placement of a $600 million securitization of asset-backed notes by Flagstar ABS LLC, a wholly owned subsidiary of Flagstar Bank FSB.The notes, issued through Flagstar Home Equity Loan Trust 2005-1, consist of one class and are backed by home equity lines of credit originated and serviced by Flagstar Bank, the company said. The deal, placed with institutional buyers, used a prefunding structure under which approximately $450 million worth of HELOCs were sold Dec. 8 and approximately $150 million more will be sold within 90 days. Flagstar can be found online at http://www.flagstar.com.