Exhibit 99.1

	NEWS RELEASE
	For more information, contact:
	Paul D. Borja
	Executive Vice President / CFO (248) 312-2000
	FOR IMMEDIATE RELEASE

FLAGSTAR REPORTS 2009 SECOND QUARTER RESULTS

TROY, Mich. (July 28, 2009) — Flagstar Bancorp, Inc. (NYSE:FBC), the holding company for Flagstar Bank FSB, today reported a second quarter 2009 net loss applicable to common stockholders of $76.6 million, or $(0.32) per share (diluted), as compared to a net loss of $67.4 million, or $(0.76) per share (diluted) on a linked quarter basis. Net earnings were $15.7 million, or $0.22 per share (diluted), in the second quarter 2008. For the six months ended June 30, 2009, Flagstar’s net loss applicable to common stockholders was $144.0 million, or $(0.88) per share (diluted), as compared to net earnings of $5.1 million, or $0.08 per share (diluted) for the same period 2008.

On a pre-tax, pre-credit cost basis, earnings before preferred dividends were $78.9 million in the second quarter 2009, as compared to earnings of $144.7 million in the first quarter 2009. For the second quarter 2009 as compared to the first quarter 2009, residential loan originations decreased to $9.3 billion from $9.5 billion, loan sales increased to $9.9 billion from $7.7 billion and the margin on loan sales decreased to 1.06% from 2.54%, respectively. For the six month periods ended June 30, 2009 and 2008, residential loan originations increased to $18.8 billion from $16.2 billion, loan sales increased to $17.6 billion from $15.3 billion and the margin on loan sales increased to 1.71% from 0.70%, respectively.

“Although it is always disappointing to lose money, we were able to continue to generate positive income on an operating basis and are encouraged by the improvement in mortgage delinquency trends that we experienced towards the end of the quarter,” said Mark T. Hammond, Chief Executive Officer.

Capital

At June 30, 2009, the wholly owned subsidiary Flagstar Bank remained “well-capitalized” for regulatory purposes, with capital ratios of 7.19% for Tier 1 capital and 13.67% for total risk-based capital. During the second quarter 2009, the final tranche of $50 million in capital investment from MP Thrift Investments was completed, which $30 million was invested into the Bank. This final tranche resulted in the total investment of MP Thrift Investments into Flagstar Bancorp to $350 million. This was in addition to the $266 million of preferred stock and warrants sold to the U.S. Treasury via the TARP program, during the first quarter 2009.

Assets

Total assets at June 30, 2009 were $16.4 billion as compared to $16.8 billion at March 31, 2009. The decrease was primarily a result of the decline in loans available for sale and loans held for investment., offset in part by an increase in cash and cash equivalents. Total assets were $14.2 billion at December 31, 2008 and $14.6 billion at June 30, 2008.

Operations

For the second quarter 2009, the net loss applicable to common stockholders of $76.6 million reflected the following:

• Gain on loan sales decreased to $104.7 million as compared to $195.7 million for the first quarter 2009, reflecting the decrease in the margin on loan sales during the second quarter 2009 to 1.06% from 2.54%.

• Provision for loan losses decreased to $125.7 million as compared to $158.2 million for the first quarter of 2009.

• Loan fees, resulting from originating loans, increased to $35.0 million in the second quarter 2009 as compared to $32.9 million during the first quarter 2009. This reflected an increase in warehouse draw fees, escrow waiver fees and underwriting fees in the second quarter 2009 as compared to the first quarter 2009.

• Non interest expense decreased to $171.8 million as compared to $182.7 million in the first quarter 2009. The decrease reflected a decline in commissions of $18.1 million due to lower loan origination volume in the second quarter 2009 and a revised commission structure, and it also reflected a $6.9 million decline in costs associated with foreclosed property.

• Net loan administration income reflected a gain of $41.9 million (offset by a loss of approximately $39.1 million on trading securities that were used for economic hedging purposes) as compared to a loss of $31.8 million for the first quarter 2009 (offset by a gain of approximately $23.7 million on trading securities that were used for economic hedging purposes).

• Warrant expense of $12.9 million was recorded in the second quarter of 2009 with respect to the Treasury warrants outstanding. This amount, together with the $9.1 million of Treasury warrant expense incurred during the first quarter of 2009 was added to equity upon receipt of stockholder approval of additional stock in May. Accordingly, no further expense will be recognized for the Treasury warrants, although these amounts must still be reflected as expenses during the first and second quarters of 2009.

• FDIC premium expense included a special assessment that was imposed on all banks during the second quarter 2009 and which totaled $7.8 million for the Bank.

• General and administrative expense for the second quarter 2009 included a $10.4 million reserve against possible reinsurance losses, as compared to no such expense for the second quarter 2008.

Funding Sources

Flagstar Bank’s primary sources of funds are deposits, loan repayments and sales, advances from the Federal Home Loan Bank of Indianapolis (FHLB), cash generated from operations, customer escrow accounts and security repurchase agreements. Retail deposits were $6.0 billion at June 30, 2009, as compared to $6.2 billion at March 31, 2009 and $5.0 billion at June 30, 2008. At June 30, 2009, the Bank had a $7.0 billion line of credit with the FHLB, which was collateralized to $5.7 billion and of which $502.0 million was available, and a $426.0 million undrawn line of credit at the Federal Reserve discount window.

Net Interest Margin

Flagstar Bank increased its net interest margin to 1.69% for the second quarter 2009 as compared to 1.67% for the first quarter 2009 and 1.89% for second quarter 2008. For the six months ended June 30, 2009, the net interest margin was 1.68% as compared to 1.77% for the six months ended June 30, 2008.

Retail Banking Operations

Flagstar Bank had 175 retail banking branches at June 30, 2009 as compared to 177 branches at March 31, 2009 and 170 branches at June 30, 2008.

Mortgage Banking Operations

Loan production, substantially comprised of agency residential first mortgage loans, decreased to $9.3 billion for the second quarter 2009, as compared to $9.5 billion in the first quarter 2009, but increased from the $8.2 billion for the second quarter 2008.

For the six months ended June 30, 2009 loan production increased 16.0% to $18.8 billion, which was substantially all residential loans, as compared to $16.2 billion, including $15.9 billion of residential loans, for the six months ended June 30, 2008.

Gain on loan sales margins decreased to 1.06% for the second quarter 2009, as compared to 2.54% for the first quarter 2009, but increased from and 0.54% for the second quarter 2008. For the six months ended June 30, 2009, the gain on sale margin increased to 1.71% as compared to 0.70% for the same period in 2008.

At June 30, 2009, the unpaid principal balances of loans associated with the mortgage servicing rights portfolio totaled $61.5 billion and had a weighted average service fee of 33.1 basis points. This was an increase from $58.9 billion at March 31, 2009 with a weighted average servicing fee of 33.4 basis points and $45.8 billion at June 30, 2008 with an average weighted servicing fee of 34.2 basis points.

Asset Quality

Non-performing assets, which include non-performing loans (i.e., loans 90 days or more past due, and matured loans), real estate owned and repurchased assets, but which exclude any FHA-insured assets, increased to $1.1 billion at June 30, 2009, from $1.0 billion at March 31, 2009 and $0.5 billion at June 30, 2008.

Non-performing loans, which exclude any FHA-insured loans, increased to $940.8 million (11.18% of loans held for investment) at June 30, 2009 as compared to $893.8 million (9.99% of loans held for investment) at March 31, 2009 and $363.9 million (4.00% of loans held for investment) at June 30, 2008.

Of the non-performing loans, residential first mortgage loans increased to $588.2 million at June 30, 2009, as compared to $561.5 million at March 31, 2009 and $232.6 million at June 30, 2008. Portfolio of single-family residential first mortgage loans held for investment at June 30, 2009 had an average original FICO credit score of 717 and an average original loan-to-value ratio of 74.33%.

Non-performing commercial real estate mortgages increased to $295.8 million at June 30, 2009 as compared to $260.9 million at March 31, 2009 and $112.1 million at June 30, 2008. These loans are individually evaluated for impairment and may require a specific loan loss reserve depending upon the sufficiency of collateral or cash flows.

The balance of our real estate owned, net of any FHA-insured assets, increased to $131.6 million at June 30, 2009 from $106.5 million at March 31, 2009 and $118.6 million at June 30, 2008. Repurchased assets were $18.4 million at June 30, 2009 as compared to $14.8 million at March 31, 2009 and $11.3 million at June 30, 2008.

Net loan charge-offs were $117.7 million for the second quarter 2009 as compared to $68.2 million for the first quarter 2009 and $11.2 million for the second quarter 2008. The provision for loan losses was $125.7 million for the second quarter 2009 as compared to $158.2 million for the first quarter 2009 and $43.8 million for the second quarter 2008. The allowance for loan losses was $474.0 million (5.63% of loans held for investment) at June 30, 2009 as compared to $466.0 million (5.21% of loans held for investment) at March 31, 2009 and $154.0 million (1.69% of loans held for investment) at June 30, 2008.

As Previously Announced

The Company’s quarterly earnings conference call will be held on Wednesday, July 29, 2009 from 11 a.m. until 12 noon (Eastern).

Questions for discussion at the conference call may only be submitted in advance by e-mail to investors@flagstar.com.

The conference call and accompanying slide presentation will be webcast live on the Investor Relations section of the Company’s Web site, www.flagstar.com, with replays available at that site for at least 10 days.

To listen by telephone, please call at least 10 minutes prior to the start of the conference call at (702) 696-4911 or toll free at (866) 294-1212, passcode: 17931011.

A replay will be available for five business days by calling (800) 642-1687 toll free or (706) 645-9291 using the passcode: 17931011.

Flagstar Bancorp, with $16.4 billion in total assets, is the largest publicly held savings bank headquartered in the Midwest. At June 30, 2009, Flagstar operated 175 banking centers in Michigan, Indiana and Georgia and 45 home loan centers in 18 states. Flagstar Bank originates loans nationwide and is one of the leading originators of residential mortgage loans.

The information contained in this release is not intended as a solicitation to buy Flagstar Bancorp, Inc. stock and is provided for general information. This release contains certain statements that may constitute “forward-looking statements” within the meaning of federal securities laws. These forward-looking statements include statements about the Company’s beliefs, plans, objectives, goals, expectations, anticipations, estimates, and intentions, that are subject to significant risks and uncertainties, and are subject o change based upon various factors (some of which may be beyond the Company’s control). The words “may,” “could,” “should,” “would,” “believe,” and similar expressions are intended to identify forward-looking statements.

Flagstar Bancorp, Inc.
Summary of Selected Consolidated Financial Data
(Dollars in thousands, except per share data)
(Unaudited)

	For the Three Months Ended
Summary of Consolidated	June 30,			March 31,			June 30,
Statements of Operations	2009			2009			2008
Interest income	$	187,848		$	184,978		$	200,564
Interest expense		(127,831	)		(128,248	)		(139,165	)
Net interest income		60,017			56,730			61,399
Provision for loan losses		(125,662	)		(158,214	)		(43,833	)
Net interest (expense) income after provision		(65,645	)		(101,484	)		17,566
Non-interest income
Deposit fees and charges		7,984			7,233			6,815
Loan fees and charges, net		35,022			32,922			617
Loan administration		41,853			(31,801	)		37,370
(Loss) gain on trading securities		(39,085	)		23,747			—
Gain on trading securities — residuals		(3,400	)		(12,535	)		(4,104	)
Net gain on loan sales		104,664			195,694			43,826
Net loss on MSR sales		(2,544	)		(82	)		(834	)
Net impairment on securities available for sale		(327	)		(17,242	)		—
Net gain on securities available for sale		—			—			4,869
Other (loss) income		(9,630	)		(6,977	)		11,718
Total non-interest income		134,537			190,959			100,277
Non-interest expenses
Compensation and benefits		(56,584	)		(58,654	)		(54,411	)
Commissions		(15,302	)		(33,415	)		(30,788	)
Occupancy and equipment		(17,499	)		(18,879	)		(20,471	)
General and administrative		(42,112	)		(37,669	)		(14,879	)
Other		(40,571	)		(34,335	)		(6,670	)
Total non-interest expense		(172,068	)		(182,952	)		(127,219	)
Capitalized direct cost of loan closing		250			283			33,483
Total non-interest expense after capitalized direct cost of loan closing		(171,818	)		(182,669	)		(93,736	)
(Loss) earnings before federal income tax and preferred stock dividends		(102,926	)		(93,194	)		24,107
Benefit (provision) for federal income taxes		31,261			28,696			(8,361	)
Net (loss) earnings		(71,665	)		(64,498	)		15,746
Preferred stock dividends		(4,921	)		(2,919	)		—
Net (loss) earnings available to common stockholders	$	(76,586	)	$	(67,417	)	$	15,746
Basic (loss) earnings per share	$	(0.32	)	$	(0.76	)	$	0.24
Diluted (loss) earnings per share	$	(0.32	)	$	(0.76	)	$	0.22
Net interest spread — Consolidated		1.42	%		1.59	%		1.77	%
Net interest margin — Consolidated		1.61	%		1.59	%		1.80	%
Interest rate spread — Bank only		1.45	%		1.63	%		1.82	%
Net interest margin — Bank only		1.69	%		1.67	%		1.89	%
Return on average assets		(1.83	)%		(1.68	)%		0.41	%
Return on average equity		(33.30	)%		(33.64	)%		8.39	%
Efficiency ratio		88.3	%		73.8	%		58.0	%
Average interest earning assets	$	14,888,480		$	14,026,946		$	13,677,016
Average interest paying liabilities	$	14,106,978		$	14,057,366		$	13,606,212
Average stockholders’ equity	$	920,025		$	801,534		$	750,978
Equity/assets ratio (average for the period)		5.48	%		5.00	%		4.91	%
Ratio of charge-offs to average loans held for investment		5.42	%		3.00	%		0.50	%

Flagstar Bancorp, Inc.
Summary of Selected Consolidated Financial Data
(Dollars in thousands, except per share data)
(Unaudited)

	For the Six Months Ended
Summary of Consolidated	June 30,			June 30,
Statements of Operations	2009			2008
Interest income	$	372,826		$	411,417
Interest expense		(256,079	)		(295,220	)
Net interest income		116,747			116,197
Provision for loan losses		(283,876	)		(78,096	)
Net interest (expense) income after provision		(167,129	)		38,101
Non-interest income
Deposit fees and charges		15,217			12,846
Loan fees and charges, net		67,944			1,501
Loan administration		10,053			20,324
Loss on trading securities		(15,338	)		—
Loss on trading securities — residuals		(15,935	)		(13,586	)
Net gain on loan sales		300,358			107,252
Loss on MSR sales, net		(2,626	)		(547	)
Impairment — securities available for sale		(17,569	)		—
Gain on securities available for sale		—			4,869
Other (loss) income		(16,608	)		20,293
Total non-interest income		325,496			152,952
Non-interest expenses
Compensation and benefits		(115,238	)		(111,037	)
Commissions		(48,717	)		(60,103	)
Occupancy and equipment		(36,378	)		(40,324	)
General and administrative		(79,781	)		(11,927	)
Other		(74,906	)		(25,300	)
Total non-interest expense		(355,020	)		(248,691	)
Capitalized direct cost of loan closing		533			65,786
Total non-interest expense after capitalized direct cost of loan closing		(354,487	)		(182,905	)
(Loss) earnings before federal income tax and preferred stock dividends		(196,120	)		8,148
Benefit (provision) for federal income taxes		59,957			(3,002	)
Net (loss) earnings		(136,163	)		5,146
Preferred stock dividends		(7,841	)		—
Net (loss) earnings available to common stockholders	$	(144,004	)	$	5,146
Basic (loss) earnings per share	$	(0.88	)	$	0.08
Diluted (loss) earnings per share	$	(0.88	)	$	0.08
Net interest spread — Consolidated		1.50	%		1.62	%
Net interest margin — Consolidated		1.60	%		1.66	%
Interest rate spread — Bank only		1.53	%		1.67	%
Net interest margin — Bank only		1.68	%		1.77	%
Return on average assets		(1.76	)%		0.07	%
Return on average equity		(33.45	)%		1.43	%
Efficiency ratio		80.2	%		68.0	%
Average interest earning assets	$	14,460,094		$	13,983,160
Average interest paying liabilities	$	14,063,565		$	13,841,065
Average stockholders’ equity	$	861,107		$	720,714
Equity/assets ratio (average for the period)		5.25	%		4.66	%
Ratio of charge-offs to average loans held for investment		4.18	%		0.64	%

Flagstar Bancorp, Inc.
Summary of Selected Consolidated Financial Data
(Dollars in thousands, except per share data)
(Unaudited)

Summary of the Consolidated	June 30,			March 31,			December 31,			June 30,
Statements of Financial Condition:	2009			2009			2008			2008
Total assets	$	16,423,292		$	16,809,817		$	14,203,657		$	14,605,993
Securities — trading		1,603,480			1,693,140			542,539			33,782
Investment securities available for sale		734,827			775,812			1,118,453			978,033
Loans held for sale		3,009,740			3,660,259			1,484,680			2,706,372
Loans held for investment, net		7,943,849			8,480,195			8,706,121			8,937,262
Allowance for loan losses		(474,000	)		(466,000	)		(376,000	)		(154,000	)
Mortgage servicing rights		664,292			522,771			520,763			672,385
Deposits		9,470,673			9,785,701			7,841,005			7,478,188
FHLB advances		5,151,907			5,200,000			5,200,000			5,736,000
Repurchase agreements		108,000			108,000			108,000			108,000
Stockholders’ equity		915,521			930,734			472,293			801,764
Other Financial and Statistical Data:
Equity/assets ratio		5.57	%		5.54	%		3.33	%		5.49	%
Core capital ratio		7.19	%		7.22	%		4.95	%		6.70	%
Total risk-based capital ratio		13.67	%		13.58	%		9.10	%		11.65	%
Book value per common share	$	1.38		$	4.03		$	5.65		$	10.45
Shares outstanding at quarter-end		468,530			90,379			83,627			72,337
Average shares outstanding during the quarter		239,425			88,210			72,153			66,005
Average diluted shares outstanding during the quarter		239,425			88,210			72,153			71,746
Loans serviced for others	$	61,531,058		$	58,856,128		$	55,870,207		$	45,830,865
Weighted average service fee (bps)		33.1			33.4			33.3			34.2
Value of mortgage servicing rights		1.07	%		0.88	%		0.93	%		1.47	%
Allowance for loan losses to non performing loans		50.4	%		52.1	%		52.1	%		42.3	%
Allowance for loan losses to loans held for Investment		5.63	%		5.21	%		4.14	%		1.69	%
Non performing assets to total assets		6.64	%		6.04	%		5.97	%		3.38	%
Number of bank branches		175			177			175			170
Number of loan origination centers		45			61			104			121
Number of employees (excluding loan officers & account executives)		3,290			3,285			3,246			3,389
Number of loan officers and account executives		457			519			674			791

Loan Originations
(Dollars in millions)
(Unaudited)

	For the Three Months Ended
	June 30,				March 31,				June 30,
Loan type	2009				2009				2008
Residential mortgage loans	$	9,287	100.0	%	$	9,500	99.8	%	$	8,060	98.6	%
Consumer loans		1	—			3	—			46	0.6
Commercial loans		8	—			17	0.2			71	0.8
Total loan production	$	9,296	100.0	%	$	9,520	100.0	%	$	8,177	100.0	%

	For the Six Months Ended
	June 30,				June 30,
Loan type	2009				2008
Residential mortgage loans	$	18,787	99.9	%	$	15,920	98.4	%
Consumer loans		4	—			95	0.6
Commercial loans		25	0.1			172	1.0
Total loan production	$	18,816	100.0	%	$	16,187	100.0	%

Loans Held for Investment
(Dollars in thousands)
(Unaudited)

	June 30,				March 31,
	2009				2009
First mortgage loans	$	5,529,395	65.7	%	$	5,754,604	64.3	%
Second mortgage loans		246,895	2.9			266,198	3.0
Commercial real estate loans		1,692,052	20.1			1,758,612	19.7
Construction loans		36,599	0.4			45,187	0.5
Warehouse lending		383,368	4.6			569,120	6.4
Consumer loans		508,309	6.0			527,221	5.9
Non-real estate commercial		21,231	0.3			25,253	0.2
Total loans held for investment	$	8,417,849	100.0	%	$	8,946,195	100.0	%

	December 31,				June 30,
	2008				2008
First mortgage loans	$	5,958,748	65.6	%	$	6,042,770	66.5	%
Second mortgage loans		287,350	3.2			294,783	3.2
Commercial real estate loans		1,779,363	19.6			1,706,191	18.8
Construction loans		54,749	0.6			71,345	0.8
Warehouse lending		434,140	4.8			423,356	4.7
Consumer loans		543,102	6.0			529,034	5.8
Non-real estate commercial		24,669	0.2			23,783	0.2
Total loans held for investment	$	9,082,121	100.0	%	$	9,091,262	100.0	%

Allowance for Loan Losses
(Dollars in thousands)
(Unaudited)

	For the Three Months Ended
	June 30			March 31,			June 30,
	2009			2009			2008
Description	(000’s)			(000’s)			(000’s)
Beginning Balance	$	(466,000	)	$	(376,000	)	$	(121,400	)
Provision for losses		(125,662	)		(158,214	)		(43,833	)
Charge offs, net of recoveries
First mortgage loans		30,395			24,941			9,028
Second mortgage loans		11,385			12,603			711
Commercial loans		64,295			22,633			13
Construction loans		745			756			58
Warehouse		497			—			92
Consumer:
HELOC		8,988			6,127			812
Other consumer loans		1,081			678			206
Other		276			476			313
Charge-offs, net of recoveries		117,662			68,214			11,233
Ending Balance	$	(474,000	)	$	(466,000	)	$	(154,000	)

	For the Six Months Ended
	June 30,
	2009			2008
Description	(000’s)			(000’s)
Beginning Balance	$	(376,000	)	$	(104,000	)
Provision for losses		(283,876	)		(78,096	)
Charge offs, net of recoveries
First mortgage loans		55,336			14,924
Second mortgage loans		23,988			947
Commercial loans		86,928			8,235
Construction loans		1,501			85
Warehouse		497			711
Consumer:
HELOC		15,115			1,785
Other consumer loans		1,759			765
Other		752			644
Charge-offs, net of recoveries		185,876			28,096
Ending Balance	$	(474,000	)	$	(154,000	)

Composition of Allowance for Loan Losses
As of June 30, 2009
(In thousands)
(Unaudited)

	General		Specific
Description	Reserves		Reserves		Total
First mortgage loans	$	187,945	$	45,517	$	233,462
Second mortgage loans		32,219		—		32,219
Commercial real estate loans		46,294		116,438		162,732
Construction loans		2,889		1,229		4,118
Warehouse lending		1,953		2,282		4,235
Consumer loans		26,741		716		27,457
Non-real estate commercial		587		2,068		2,655
Other and unallocated		7,122		—		7,122
Total allowance for loan losses	$	305,750	$	168,250	$	474,000

Gain on Loan Sales and Securitizations
(Dollars in thousands)
(Unaudited)

	For the Three Months Ended
	June 30,						March 31,						June 30,
	2009						2009						2008
Description	(000’s)			bps			(000’s)			bps			(000’s)			bps
Gain on loan sales and securitizations	$	87,535			89		$	211,903			274		$	111,747			138
Fair value adjustment for loans held for sale (1)		20,388			20			21,955			29			—			—
Hedging costs		39,539			40			(14,030	)		(18	)		6,044			7
LOCOM adjustments		(172	)		—			(257	)		—			(22,474	)		(28	)
Provision to SMR		(7,130	)		(7	)		(3,802	)		(5	)		(2,813	)		(3	)
Credit losses		9			—			5			—			(2,279	)		(3	)
Loan level pricing adjustments		(35,242	)		(36	)		(19,433	)		(25	)		(46,027	)		(57	)
Other transaction costs		(263	)		—			(647	)		(1	)		(372	)		—
Net gain on loan sales and securitizations	$	104,664			106		$	195,694			254		$	43,826			54
Total loan sales and securitizations	$	9,878,035					$	7,699,063					$	8,106,544

(1) On January 1, 2009, the Company adopted fair value accounting for its residential first mortgage loans held for sale and originated on or after that date.

	For the Six Months Ended June 30,
	2009						2008
Description	(000’s)			Bps			(000’s)			bps
Gain on loan sales and securitizations	$	299,752			170		$	205,820			135
Fair value adjustment for loans held for sale		42,343			24			—			—
Hedging costs		25,509			15			15,143			10
LOCOM adjustments		(429	)		—			(22,699	)		(15	)
Provision to SMR		(10,932	)		(6	)		(5,812	)		(4	)
Credit losses		14			—			(6,717	)		(4	)
Loan level pricing adjustments		(54,988	)		(31	)		(77,546	)		(51	)
Other transaction costs		(911	)		(1	)		(937	)		(1	)
Net gain on loan sales and securitizations	$	300,358			171			107,252			70
Total loan sales and securitizations	$	17,577,097					$	15,266,871

Asset Quality
(Dollars in thousands)
(Unaudited)

	June 30, 2009					March 31, 2009
			% of					% of
Days delinquent	Balance		Total			Balance		Total
30	$	158,303		1.9	%	$	172,214		1.9	%
60		94,567		1.1			129,999		1.5
90		91,218		1.1			126,022		1.4
120 +		849,559		10.1			767,786		8.6
Total	$	1,193,647		14.2	%	$	1,196,021		13.4	%
Total loans held for investment	$	8,417,849				$	8,946,195

	December 31, 2008					June 30, 2008
			% of					% of
Days delinquent	Balance		Total			Balance		Total
30	$	145,407		1.6	%	$	95,311		1.1	%
60		111,404		1.3			69,930		0.8
90		137,683		1.5			54,214		0.6
120 +		584,618		6.4			309,717		3.3
Total	$	979,112		10.8	%	$	529,172		5.8	%
Total loans held for investment	$	9,082,121				$	9,091,262

Non-Performing Loans and Assets
(Dollars in thousands)
(Unaudited)

	June 30,			March 31,			December 31,			June 30,
	2009			2009			2008			2008
Non-performing loans	$	940,777		$	893,808		$	722,301		$	363,931
Real estate owned		131,620			106,546			109,297			118,582
Repurchased assets/non-performing assets		18,384			14,830			16,454			11,298
Non-performing assets	$	1,090,781		$	1,015,184		$	848,052		$	493,811
Non-performing loans as a percentage of investment loans		11.18	%		9.99	%		7.95	%		4.00	%
Non-performing assets as a percentage of total assets		6.64	%		6.04	%		5.97	%		3.38	%

Deposit Portfolio
(Dollars in thousands)
(Unaudited)

	June 30, 2009					March 31, 2009
Description	Balance		Rate			Balance		Rate
Demand deposits	$	455,083		0.27	%	$	427,167		0.30	%
Savings deposits		558,709		1.27			446,440		1.79
Money market deposits		717,816		1.60			662,273		2.10
Certificates of deposits/ CDARS		4,310,498		3.62			4,647,038		3.66
Total retail deposits		6,042,106		2.91			6,182,918		3.13
Company controlled custodial deposits		1,217,163		—			749,102		—
Public funds / CDARS		420,512		1.20			616,318		1.80
Wholesale deposits		1,790,892		3.68			2,237,363		3.23
Total deposits	$	9,470,673		2.61	%	$	9,785,701		2.83	%

	December 31, 2008					June 30, 2008
Description	Balance		Rate			Balance		Rate
Demand deposits	$	416,920		0.47	%	$	455,523		0.65	%
Savings deposits		407,501		2.24			441,017		2.39
Money market deposits		561,909		2.61			544,390		2.47
Certificates of deposits / CDARS		3,967,985		3.94			3,616,013		4.27
Total retail deposits		5,354,315		3.40			5,056,943		3.59
Company controlled custodial deposits		535,494		—			587,655		—
Public funds / CDARS		597,638		2.84			875,730		2.98
Wholesale deposits		1,353,558		4.41			957,860		4.78
Total deposits	$	7,841,005		3.30	%	$	7,478,188		3.39	%

Pre-tax, pre-credit-cost Income
(Non GAAP measure)
(Dollars in millions)
(Unaudited)

	For the Three Months Ended
	June 30, 2009			March 31, 2009			June 30, 2008
(Loss) income before tax provision / benefit	$	(102.9	)	$	(93.2	)	$	24.1
Add back:
Provision for loan losses		125.7			158.2			43.8
Asset resolution		18.0			24.9			8.1
Other than temporary impairment (OTTI) on AFS securities		0.3			17.2			—
Secondary marketing reserve provision		24.0			14.7			2.7
Write down of residual interests		3.4			12.5			4.1
Reserve increase for reinsurance		10.4			10.4			—
Total credit-related-costs:		181.8			237.9			58.7
Pre-tax, pre-credit-cost income	$	78.9		$	144.7		$	82.8

	For the Six Months Ended
	June 30, 2009			June 30, 2008
(Loss) income before tax provision / benefit	$	(196.1	)	$	8.1
Add back:
Provision for loan losses		283.9			78.1
Asset resolution		42.9			11.8
Other than temporary impairment (OTTI) on AFS securities		17.5			—
Secondary marketing reserve provision		38.7			(1.6	)
Write down of residual interests		15.9			13.7
Reserve increase for reinsurance		20.9			—
Total credit-related-costs:		419.8			101.9
Pre-tax, pre-credit-cost income	$	223.7		$	110.0