Flagstar Bancorp Inc., Troy, Mich., had a loss of $23 million for the third quarter, much improved over the $298 million loss for the same period last year, aided by an increase in mortgage loan originations of 39% and a 60% increase in gain on sale income.
Meanwhile, the company announced pricing of its $380 million public stock offerings; it will sell 110 million shares of common stock at $1 per share, and 13.5 million shares of convertible preferred stock at $20 per share.
Gain on loan sales is $103 million, compared with $64 million for the second quarter and $104 million for the third quarter last year.
The quarter-to-quarter improvement in gain on sale reflects the increase in loan origination volume and the increase in margin.
For the quarter, Flagstar originated $7.6 billion, vs. $5.5 billion for the second quarter and $6.6 billion for the 2009 third quarter. Year-to-date, it has done $17.4 billion; by channel, $9.9 billion in correspondent, $6 billion is wholesale and $1.4 billion retail.
As of Sept. 30, it services $52.3 billion for other investors and the portfolio has a weighted average servicing fee of 31.5 basis points.
Flagstar had $325 million of non-performing residential first mortgages and $239 million of non-performing commercial mortgages at the end of the quarter.
