8-K

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

Current Report
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): April 28, 2010

Flagstar Bancorp, Inc.

(Exact name of registrant as specified in its charter)

Michigan	1-16577	38-3150651
(State or other jurisdiction of	(Commission File	(I.R.S. Employer
incorporation)	Number)	Identification No.)
5151 Corporate Drive, Troy, Michigan		48098
(Address of principal executive offices)		(Zip Code)

(248) 312-2000
(Registrant’s telephone number, including area code)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Item 2.02 Results of Operations and Financial Condition

On April 28, 2010, Flagstar Bancorp, Inc. (the “Company”) issued a press release regarding its results of operations and financial condition for the three months ended March 31, 2010. The text of the press release is included as Exhibit 99.1 to this report. The Company will include final financial statements and additional analyses for the three months ended March 31, 2010 as part of its Quarterly Report on Form 10-Q covering that period.

The information in this Item 2.02, including the exhibit attached hereto, is furnished pursuant to Item 2.02 and shall not be deemed “filed” for any other purpose, including for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that Section. The information in this Item 2.02 of this Current Report on Form 8-K shall not be deemed incorporated by reference into any filing under the Securities Act of 1933 or the Exchange Act regardless of any general incorporation language in such filing.

Item 7.01 Regulation FD Disclosure

On April 28, 2010, the Company held a quarterly conference call to review first quarter 2010 earnings and furnished a slide presentation to accompany the call. A copy of the slide presentation used by the Company on the conference call is furnished as Exhibit 99.2 to this Current Report on Form 8-K and incorporated by reference herein.

The information in this Item 7.01, including the exhibit attached hereto, is furnished pursuant to Item 7.01 and shall not be deemed “filed” for any other purpose, including for purposes of Section 18 of the Exchange Act or otherwise subject to the liabilities of that Section. The information in this Item 7.01 of this Current Report on Form 8-K shall not be deemed incorporated by reference into any filing under the Securities Act of 1933 or the Exchange Act regardless of any general incorporation language in such filing.

The information contained in this Form 8-K is not intended as a solicitation to buy the Company’s stock and is provided for general information. This Form 8-K 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 to 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. Factors that could cause the Company’s actual results to differ materially from those described in the forward-looking statements can be found in the Company’s Annual Report on Form 10-K for the year ended December 31, 2009, filed with the Securities and Exchange Commission and available on the Company’s website (www.flagstar.com) and on the Securities and Exchange Commission’s website (www.sec.gov). The Company does not undertake to update the forward-looking statements to reflect the impact of circumstances or events that may arise after the date of the forward-looking statements.

Item 9.01 Financial Statements and Exhibits

(d) The following exhibits are being furnished herewith:

Exhibit No.	Exhibit Description
99.1	Press release of Flagstar Bancorp, Inc. dated April 28, 2010
99.2	Flagstar Bancorp, Inc. Conference Call Presentation Slides —First Quarter 2010 Financial Results

SIGNATURE

     Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, hereunto duly authorized.

	FLAGSTAR BANCORP, INC.
Dated: April 29, 2010	By:	/s/ Paul D. Borja
		Paul D. Borja
		Executive Vice-President and CFO

EX-99.1

Exhibit 99.1

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

FLAGSTAR REPORTS 2010 FIRST QUARTER RESULTS

TROY, Mich. (April 28, 2010) — Flagstar Bancorp, Inc. (NYSE:FBC), the holding company for Flagstar Bank FSB, today reported a first quarter 2010 net loss applicable to common stockholders of $81.9 million, or $(0.11) per share (diluted) based on average shares outstanding of 777.0 million, as compared to a net loss of $71.6 million, or $(0.15) per share (diluted) based on average shares outstanding of 317.7 million in the fourth quarter 2009. As of March 31, 2010 there were 1.47 billion shares outstanding. Our net loss was $67.4 million, or $(0.76) per share (diluted), in the first quarter 2009 based on average shares outstanding of 88.2 million.

     Capital

At March 31, 2010, the wholly owned subsidiary Flagstar Bank remained “well-capitalized” for regulatory purposes, with capital ratios of 9.37% for Tier 1 capital and 17.93% for total risk-based capital.

On February 9, 2010, the Company announced that it had completed its previously announced rights offering and raised $300.6 million of capital in connection with the exercise of subscription rights by its stockholders and issued approximately 423.3 million shares of its common stock to participating stockholders.

On March 31, 2010, the Company also announced that it has completed its previously announced registered offering of 575 million shares of common stock, which includes 75 million shares issued pursuant to the underwriters’ over-allotment option, on March 29, 2010. The offering resulted in net

proceeds to the Company of approximately $276.1 million, after deducting underwriting fees and estimated offering expenses.

On April 1, 2010, MP Thrift Investments, L.P., the Company’s majority shareholder, exercised its right to convert $50 million of trust preferred securities into 62.5 million shares of common stock.

Assets

Total assets at March 31, 2010 were $14.3 billion as compared to $14.0 billion at December 31, 2009. The increase reflects an increase in stockholders equity, the proceeds of which were invested in liquid short-term assets.

Operations

For the first quarter 2010, our net loss applicable to common stockholders of $81.9 million reflected the following:

• Gain on loan sales decreased to $52.6 million as compared to $96.5 million for the fourth quarter 2009, reflecting both the decrease in interest rate locks on mortgage loans, to $6.1 billion in the first quarter 2010 from $7.9 billion in the fourth quarter 2009, and the decrease in residential mortgage loan sales, to $5.0 billion as compared to $7.1 billion in the fourth quarter of 2009. Margin on loan sales also decreased during the first quarter 2010 to 1.05% from 1.35% during the fourth quarter 2009.

• Provision for loan losses decreased to $63.5 million as compared to $95.0 million for the fourth quarter of 2009. Net charge-offs decreased to $49.6 million for first quarter 2010 as compared to $98.9 million for fourth quarter 2009.

• Loan fees, resulting from the origination of residential mortgage loans, decreased to $16.3 million in the first quarter 2010 as compared to $27.8 million during the fourth quarter 2009. Loan originations declined to $4.3 billion for the first quarter 2010 as compared to $6.9 billion for fourth quarter 2009.

• Net loan administration income reflected a gain of $26.2 million as compared to a gain of $27.4 million for the fourth quarter 2009. The first quarter 2010 and the fourth quarter 2009 gains were partially offset by losses of $3.3 million and $0.5 million, respectively, on trading securities that were issued for economic hedging purposes. The first quarter net gain of $22.9 million, as compared to the fourth quarter 2009 net gain of $26.9 million, included a decrease in the fair value of mortgage servicing rights, arising in part

	from bulk servicing sales of $10.8 billion in underlying loans which were completed during the first quarter.
•	Non interest expense decreased to $123.3 million as compared to $150.7 million in the fourth quarter 2009. The decrease reflected a decline in compensation expense of $3.6 million as the result of a reduction in salaried employees, a reduction in asset resolution expenses of $10.3 million related largely to foreclosed properties and a decline in general and administrative expenses of $15.1 million.
•	General and administrative expenses declined $15.1 million in the first quarter 2010 as compared to the fourth quarter of 2009. The decrease included a decline of $2.6 million in outside consulting fees and the absence of a $16.4 million loss on extinguishment of FHLB debt which was recorded in the fourth quarter of 2009. The decreases were offset in part by a change of $5.4 million in the valuation of outstanding warrants as a result of anti-dilution provisions that caused an adjustment to the number and the exercise price following the March 31, 2010 stock offering. Also, there was a $3.0 million increase in reinsurance expenses due to the absence of a $4.6 million gain related to termination of an agreement with one of our captive reinsurance counterparties which was recorded in the fourth quarter of 2009.

Community Banking Operations

     Flagstar Bank had 162 community banking branches at March 31, 2010 as compared to 165 branches at December 31, 2009 and 177 branches at March 31, 2009.

Net Interest Margin

Net interest margin decreased to 1.42% for the first quarter 2010 as compared to 1.67% for the fourth quarter 2009. The decrease from fourth quarter 2009 reflects a $0.9 billion decline in the average balance of earning assets with a 0.41% decline in yields. The decrease in yields is largely due to a 0.30% decline in the yield on the loans available for sale portfolio and was offset in part by an 0.11% decline in funding costs. The decline in funding costs reflects, in part, a 0.27% decline in overall deposit costs, the effect of which was largely mitigated by a $514 million decline in average deposits.

Mortgage Banking Operations

Loan production, substantially comprised of agency eligible residential first mortgage loans, decreased to $4.3 billion for the first quarter 2010, as compared to $6.9 billion in the fourth quarter 2009..

Gain on loan sales margins decreased to 1.05% for the first quarter 2010, as compared to 1.35% for the fourth quarter 2009..

At March 31, 2010, the unpaid principal balances of loans associated with our mortgage servicing rights portfolio totaled $48.3 billion and had a weighted average servicing fee of 33.0 basis points. This was a decrease from $56.5 billion at December 31, 2009 with a weighted average servicing fee of 32.1 basis points and $58.9 billion at March 31, 2009 with an average weighted servicing fee of 33.4 basis points. The unpaid principal balance decreased as the result of two bulk servicing sales, totaling $10.8 billion, during the first quarter 2010.

     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 $1.4 billion at March 31, 2010, from $1.3 billion at December 31, 2009 and $1.0 billion at March 31, 2009.

At March 31, 2010, the allowance for loan losses was $538.0 million, which equaled 47.4% of non-performing loans and 7.10% of loans held for investment. At December 31, 2009 and March 31, 2009, the allowance for loan losses were, respectively, $524.0 million (6.79% of loans held for investment) and $466.0 million (5.21% of loans held for investment) and equaled 48.9% and 52.1%, respectively, of non-performing loans.

Of the non-performing loans, residential first mortgage loans increased to $709.4 million at March 31, 2010, as compared to $659.5 million at December 31, 2009 and $561.5 million at March 31, 2009. The increase reflects no growth in the 90-120 day category, a $29.5 million increase in the over 120 — day category, and a $21.0 million increase in matured delinquent loans.

Non-performing commercial real estate mortgages increased to $395.8 million at March 31, 2010 as compared to $385.7 million at December 31, 2009 and $298.2 million at March 31, 2009.

The balance of real estate owned, net of any FHA-insured assets, decreased to $167.3 million at March 31, 2010 from $177.0 million at December 31, 2009 and increased as compared to $106.5 million at March 31, 2009. Repurchased assets were $50.7 million at March 31, 2010 as compared to $45.7 million at December 31, 2009 and $14.8 million at March 31, 2009.

     Funding Sources

Flagstar Bank’s primary sources of funds are deposits obtained through its 162 community banking branches and the internet banking platform as well as deposits obtained from municipalities and investment banking firms. Funds are also obtained through loan repayments and sales in the ordinary course of business, advances from the Federal Home Loan Bank of Indianapolis (FHLB), community banking operations, customer escrow accounts and security repurchase agreements. The Bank uses several of these sources at any one time to manage its daily and forecasted liquidity needs to satisfy operational requirements and policy levels while managing overall interest costs. Retail deposits were $5.1 billion at March 31, 2010, as compared to $5.5 billion at December 31, 2009 and $6.2 billion at March 31, 2009. At March 31, 2010, the Bank had a $7.0 billion line of credit with the FHLB, which was collateralized to $4.0 billion.

     As Previously Announced

     The Company’s quarterly earnings conference call will be held on Wednesday, April 28, 2010 from 11 a.m. until 12 noon (Eastern).

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

     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)696-4919 or toll free at (866)294-1212, passcode: 67000077.

Flagstar Bancorp, with $14.3 billion in total assets, is the largest publicly held savings bank headquartered in the Midwest. At March 31, 2010, Flagstar operated 162 banking centers in Michigan, Indiana and Georgia and 23 home loan centers in 14 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
	March 31,			December 31,			March 31,
	2010			2009			2009
Summary of Consolidated Statements of Operations
Interest income	$	126,206		$	149,405		$	184,978
Interest expense		(88,523	)		(102,205	)		(128,248	)
Net interest income		37,683			47,200			56,730
Provision for loan losses		(63,559	)		(94,950	)		(158,214	)
Net interest (loss) income after provision		(25,876	)		(47,750	)		(101,484	)
Non-interest income
Deposit fees and charges		8,413			8,774			7,233
Loan fees and charges		16,329			27,802			32,922
Loan administration		26,150			27,407			(31,801	)
Net (loss) gain on trading securities		(3,312	)		(515	)		23,747
Loss on residuals and transferors’ interest		(2,682	)		(16,243	)		(12,535	)
Net gain on loan sales		52,566			96,477			195,694
(Loss) gain on sales of mortgage servicing rights		(2,213	)		59			(82	)
Net gain on sale securities available for sale		2,166			8,556			—
Impairment — securities available for sale		(3,286	)		(304	)		(17,242	)
Other (loss) income		(22,133	)		(20,455	)		(6,977	)
Total non-interest income		71,998			131,558			190,959
Non-interest expenses
Compensation, benefits and commissions		(61,081	)		(64,686	)		(92,069	)
Occupancy and equipment		(16,011	)		(16,456	)		(18,879	)
Asset resolution		(16,573	)		(26,930	)		(24,873	)
Federal insurance premiums		(10,047	)		(8,099	)		(4,236	)
General and administrative		(19,691	)		(34,798	)		(42,895	)
Total non-interest expense		(123,403	)		(150,969	)		(182,952	)
Capitalized direct cost of loan closing		61			235			283
Total non-interest expense after capitalized direct cost of loan closing		(123,342	)		(150,734	)		(182,669	)
Loss before federal income tax and preferred stock dividend		(77,220	)		(66,926	)		(93,194	)
Benefit for federal income taxes		—			—			(28,696	)
Net loss		(77,220	)		(66,926	)		(64,498	)
Preferred stock dividends		(4,680	)		(4,660	)		(2,919	)
Net loss available to common stockholders	$	(81,900	)	$	(71,586	)	$	(67,417	)
Basic loss per share	$	(0.11	)	$	(0.15	)	$	(0.76	)
Diluted loss per share	$	(0.11	)	$	(0.15	)	$	(0.76	)
Net interest spread — Consolidated		1.40	%		1.69	%		1.59	%
Net interest margin — Consolidated		1.29	%		1.54	%		1.59	%
Net interest spread — Bank only		1.45	%		1.74	%		1.63	%
Net interest margin — Bank only		1.42	%		1.67	%		1.67	%
Return on average assets		(2.38	)%		(1.91	)%		(1.68	)%
Return on average equity		(41.02	)%		(45.08	)%		(33.64	)%
Efficiency ratio		112.5	%		84.3	%		73.8	%
Average interest earning assets	$	11,364,244		$	12,283,918		$	14,026,946
Average interest paying liabilities	$	11,773,031		$	12,843,319		$	14,057,366
Average stockholders’ equity	$	798,629		$	635,151		$	801,534
Equity/assets ratio (average for the period)		5.81	%		4.24	%		5.00	%
Ratio of charge-offs to average loans held for investment		2.65	%		4.96	%		3.00	%

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

	March 31,			December 31,			March 31,
	2010			2009			2009
Summary of the Consolidated Statements of Financial Condition:
Total assets	$	14,332,842		$	14,013,331		$	16,809,817
Securities classified as trading		893,318			330,267			1,693,140
Securities classified as available for sale		733,788			605,621			775,812
Loans available for sale		1,873,738			1,970,104			3,660,259
Loans available for investment, net		7,042,679			7,190,308			8,480,195
Allowance for loan losses		(538,000	)		(524,000	)		(466,000	)
Mortgage servicing rights		543,447			652,374			522,771
Deposits		8,145,679			8,778,469			9,785,701
FHLB advances		3,900,000			3,900,000			5,200,000
Repurchase agreements		108,000			108,000			108,000
Stockholders’ equity		1,104,764			596,724			930,734
Other Financial and Statistical Data:
Equity/assets ratio		7.71	%		4.26	%		5.54	%
Core capital ratio (bank only)		9.37	%		5.80	%		7.22	%
Total risk-based capital ratio (bank only)		17.93	%		11.23	%		13.58	%
Book value per common share	$	0.57		$	0.70		$	4.03
Shares outstanding		1,470,076			468,771			90,379
Average shares outstanding		776,986			317,656			88,210
Average diluted shares outstanding		776,986			317,656			88,210
Loans serviced for others	$	48,264,731		$	56,521,902		$	58,856,128
Weighted average service fee (bps)		33.0			32.1			33.4
Value of mortgage servicing rights		1.12	%		1.15	%		0.88	%
Allowance for loan losses to non performing loans (bank only)		47.4	%		48.9	%		52.1	%
Allowance for loan losses to loans held for investment (bank only)		7.10	%		6.79	%		5.21	%
Non performing assets to total assets (bank only)		9.45	%		9.25	%		6.06	%
Number of bank branches		162			165			177
Number of loan origination centers		23			23			61
Number of employees (excluding loan officers & account executives)		2,927			3,075			3,285
Number of loan officers and account executives		314			336			519

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

	March 31, 2010				December 31, 2009				March 31, 2009
First mortgage loans	$	4,803,425	63.4	%	$	4,990,994	64.7	%	$	5,754,604	64.3	%
Second mortgage loans		210,208	2.8			221,626	2.9			266,198	3.0
Commercial real estate loans		1,555,163	20.5			1,600,271	20.7			1,758,612	19.7
Construction loans		15,544	0.2			16,642	0.2			45,187	0.5
Warehouse lending		576,719	7.6			448,567	5.8			569,120	6.4
Consumer loans		407,742	5.4			423,842	5.5			527,221	5.9
Non-real estate commercial		11,878	0.1			12,366	0.2			25,253	0.2
Total loans held for investment	$	7,580,679	100.0	%	$	7,714,308	100.0	%	$	8,946,195	100.0	%

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

	March 31,			December 31,			March 31,
	2010			2009			2009
	(000's)			(000's)			(000's)
Beginning Balance	$	(524,000	)	$	(528,000	)	$	(376,000	)
Provision for losses		(63,559	)		(94,950	)		(158,214	)
Charge offs, net of recoveries
First mortgage loans		29,021			32,782			24,941
Second mortgage loans		6,429			10,597			12,603
Commercial R/E loans		8,108			42,311			22,633
Construction loans		20			434			756
Warehouse		472			614			—
Consumer
HELOC		4,523			10,160			6,127
Other consumer loans		332			1,391			678
Other		654			661			476
Charge-offs, net of recoveries		49,559			98,950			68,214
Ending Balance	$	(538,000	)	$	(524,000	)	$	(466,000	)

Composition of Allowance for Loan Losses
As of March 31, 2010
(In thousands)

	General		Specific
Description	Reserves		Reserves		Total
First mortgage loans	$	252,597	$	29,328	$	281,925
Second mortgage loans		36,478		23		36,501
Commercial real estate loans		50,981		112,823		163,804
Construction loans		1,995		257		2,252
Warehouse lending		2,422		1,568		3,990
Consumer loans		35,965		186		36,151
Non-real estate commercial		934		2,210		3,144
Other and unallocated		10,233		—		10,233
Total allowance for loan losses	$	391,605	$	146,395	$	538,000

Loan Originations
(Dollars in millions)
(unaudited)

	March 31,				December 31,				March 31,
	2010				2009				2009
Residential mortgage loans	$	4,330	99.8	%	$	6,902	99.9	%	$	9,500	99.8	%
Consumer loans		1	—			1	—			3	—
Commercial loans		6	0.2			9	0.1			17	0.2
Total loan production	$	4,337	100.0	%	$	6,912	100.0	%	$	9,520	100.0	%

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

	March 31,						December 31,						March 31,
	2010						2009						2009
	(000's)			bps			(000's)			bps			(000's)			bps
Valuation gain (loss):
Value of interest rate locks	$	3,024			6		$	(30,544	)		(43	)	$	4,032			5
Value of forward sales		(20,055	)		(40	)		60,838			85			2,684			4
Fair value of loans AFS		59,077			118			106,153			149			21,955			29
LOCOM adjustments on loans HFI		(88	)		—			207			—			(257	)		—
Total valuation gain (loss)		41,958			84			136,654			191			28,414			38
Sales gains (losses):
Marketing gains		58,866			117			41,614			58			211,905			274
Pair off losses		(10,064	)		(20	)		(35,990	)		(50	)		(20,746	)		(27	)
Sales adjustments		(31,051	)		(62	)		(37,269	)		(52	)		(20,077	)		(26	)
Provision for secondary marketing reserve		(7,143	)		(14	)		(8,532	)		(12	)		(3,802	)		(5	)
Total sales (losses) gains		10,608			21			(40,177	)		(56	)		167,280			216
Net gain on loan sales and securitizations	$	52,566			105		$	96,477			135		$	195,694			254
Total loan sales and securitizations	$	5,014,748					$	7,143,242					$	7,699,063

Asset Quality
(Dollars in thousands)
(unaudited)

	March 31, 2010					December 31, 2009					March 31, 2009
			% of					% of					% of
	Balance		Total			Balance		Total			Balance		Total
30	$	178,830		2.4	%	$	143,500		1.9	%	$	172,214		1.9	%
60		95,258		1.3			87,625		1.1			129,999		1.5
90 + and matured delinquent		1,136,205		14.9			1,071,636		13.9			893,808		10.0
Total	$	1,410,293		18.6	%	$	1,302,761		16.9	%	$	1,196,021		13.4	%
Loans held for investment	$	7,580,679				$	7,714,308				$	8,946,195

NON-PERFORMING LOANS AND ASSETS
(Dollars in thousands)
(unaudited)

	March 31,			December 31,			March 31,
	2010			2009			2009
Non-performing loans	$	1,136,205		$	1,071,636		$	893,808
Real estate owned		167,265			176,968			106,546
Repurchased assets/non-performing assets		50,735			45,697			14,830
Non-performing assets	$	1,354,205		$	1,294,301		$	1,015,184
Non-performing loans as a percentage of loans held for investment		14.99	%		13.89	%		9.99	%
Non-performing assets as a percentage of total assets		9.45	%		9.25	%		6.06	%

Deposit Portfolio
(Dollars in thousands)
(unaudited)

	March 31, 2010										March 31, 2009
	Balance		Rate (1)			Balance		Rate (1)			Balance		Rate (1)
Demand deposits	$	539,314		0.40	%	$	546,218		0.38	%	$	427,167		0.30	%
Savings deposits		689,480		0.86			724,278		0.73			446,440		1.79
Money market deposits		562,926		0.94			632,099		0.56			662,273		2.10
Certificates of deposits		3,330,182		2.96			3,552,090		2.94			4,647,038		3.66
Total retail deposits		5,121,902		2.18			5,454,685		2.12			6,182,918		3.13
Demand deposits		375,490		0.40			263,085		0.30			19,820		0.46
Savings deposits		80,104		0.50			81,625		0.40			89,849		0.90
Certificate of deposits		194,653		0.98			212,785		1.04			506,649		2.01
Total government deposits		650,247		0.59			620,235		0.64			616,318		1.80
Company controlled custodial deposits		580,787		—			756,423		—			749,102		—
Wholesale deposits		1,792,743		2.67			1,947,126		2.57			2,237,363		3.23
Total deposits	$	8,145,679		2.01	%	$	8,778,469		1.93	%	$	9,785,701		2.83	%

(1) At the end of the period noted.

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

	For the Three Months Ended
	March 31, 2010			December 31, 2009			March 31, 2009
Loss before tax provision / benefit	$	(77.2	)	$	(66.9	)	$	(93.2	)
Add back:
Provision for loan losses		63.5			95.0			158.2
Asset resolution		16.6			26.9			24.9
Other than temporary impairment on investments AFS		3.3			6.7			17.2
Secondary marketing reserve provision		26.8			35.8			14.6
Write down of residual interests		2.7			16.2			12.5
Reserve increase for reinsurance		—			—			10.4
Total credit-related-costs:		112.9			180.6			237.8
Pre-tax, pre-credit-cost income (expense)	$	35.7		$	113.7		$	144.6

EX-99.2

Exhibit 99.2

1 Troy, Michigan Presenters: Joseph P. Campanelli Chief Executive Officer Paul D. Borja Chief Financial Officer

2 The information contained in this presentation is not intended as a solicitation to buy Flagstar Bancorp, Inc. stock and is provided for general information. This presentation may include forward-looking statements and include comments with respect to our objectives and strategies, and the results of our operations and our business. Forward-looking statements can be identified by the fact that they do not relate strictly to historical or current facts. They often include words such as "expects," "assumes," "anticipates," "intends," "plans," "believes," "seeks," "estimates" or words of similar meaning, or future or conditional words such as "assuming," "will," "would," "possible," "proposed," "projected," "positioned," "vision," "opportunity," "should," "could," "indicative," "target" or "may." Forward-looking statements provide our expectations or predictions of future conditions, events or results. They are not guarantees of future performance. By their nature, these forward-looking statements involve numerous assumptions, uncertainties and opportunities, both general and specific. These statements speak only as of the date they are made. We do not undertake to update forward-looking statements to reflect the impact of circumstances or events that arise after the date the forward-looking statements were made. There a number of factors, many of which are beyond our control that could cause actual conditions, events or results to differ significantly from those described in the forward looking statements. Some of these are: Volatile interest rates that impact, amongst other things, (i) the mortgage banking business, (ii) our ability to originate loans and sell assets at a profit, (iii) prepayment speeds and (iv) our cost of funds, could adversely affect earnings, growth opportunities and our ability to pay dividends to shareholders. Our ability to maintain capital levels. Competitive factors for loans could negatively impact gain on loan sale margins. Competition from banking and non-banking companies for deposits and loans can affect our growth opportunities, earnings, gain on sale margins, market share and ability to transform business model. Changes in the regulation of financial services companies and government-sponsored housing enterprises, and in particular, declines in the liquidity of the mortgage loan secondary market, could adversely affect business. Changes in regulatory capital requirements or an inability to achieve desired capital ratios could adversely affect our growth and earnings opportunities and our ability to originate certain types of loans, as well as our ability to sell certain types of assets for fair market value or to transform business model. - - General business and economic conditions, including unemployment rates, further movements in interest rates, the slope of the yield curve, any increase in fraud and other criminal activity and the further decline of asset values in certain geographic markets, may significantly affect the company's business activities, loan losses, reserves, earnings and business prospects. - - Factors concerning the implementation of proposed enhancements and transformation of business model could result in slower implementation times than we anticipate and negate any competitive advantage that we may enjoy. When relying on forward-looking statements to make decisions, investors should carefully consider the aforementioned factors as well as other uncertainties and events. Legal Disclaimer

3 Income Statement ** Totals may not foot due to rounding

4 Non-Interest Income ** Totals may not foot due to rounding

5 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr Full Year 2006 4674 5260 4834 5440 20208 2007 5753 7422 6829 6690 26694 2008 8010 8177 6715 5405 28307 2009 9500 9287 6642 6902 2010 4330 ($ In millions) Loan Production - Historical Trend

6 Loan Production ** Totals may not foot due to rounding

7 Jan Feb Mar Apr May Jun Jul Aug Sept Oct Nov Dec 2004 3891.315641 4515.498543 6430.20029 4300.637102 2805.066349 2791.890592 3133.055378 3581.914821 3690.052106 4054.817867 3821.400307 3223.16827 2005 2468.53308 3450.49945 3288.85428 3103.948114 3491.828253 4153.116494 3535.701425 3645.330447 3356.344069 2603.912834 2107.139106 1895.705115 2006 2005.463231 2030.875753 2661.483255 2243.020583 2468.98476 2203.561576 1979.416021 2584.998172 2242.711096 2545.552192 2529.372123 2540.923951 2007 2497.951031 2773.80617 4023.04768 3615.181719 3735.59713 3470.727806 3324.664449 4447.349518 3698.186558 4026.397042 4067.814631 4181.163919 2008 4956 5436 5169 4623 4347 3850 4008 3366 4109 3015 2426 5176 2009 6904 4217 4623 6013 3962 3278 3372 2769 3101 3743 3285 2825 2010 1660 2104 2816 Historical Residential Loan Underwriting Volume ** Totals may not foot due to rounding

8 Jan Feb Mar Apr May Jun Jul Aug Sept Oct Nov Dec 2004 4536.544977 4293.893812 2938.028259 3624.61024 2685.013028 2861.528579 3068.983553 3552.051592 3829.495855 3916.508298 3762.421848 3023.535144 2005 2950.0595 3447.312622 3041.789802 3200.307829 3379.765993 4351.295977 3051.344636 3578.097451 3073.339528 2395.085688 1972.688367 1671.665722 2006 1999.287919 1877.983046 2594.320422 2017.490683 2292.536522 2180.94205 2043.624003 2501.659217 2193.938159 2373.869688 2526.489207 2248.739798 2007 2457.639069 2666.452654 3444.410385 3164 3164 3306 2831 3707 2905 3339 3361 3331 2008 4908 3766 5004 3662 3590 2914 3257 2550 3812 1987 3324 6305 2009 4345 3125 5130 4635 2860 2492 3079 2588 2985 3031 3059 1833 2010 1717 1953 2444 Historical Residential Loan Lock Volume ** Totals may not foot due to rounding

9 Jan Feb Mar Apr May Jun Jul Aug Sept Oct Nov Dec 2004 1919.555676 2950.167099 3981.253294 4029.085569 2652.65278 2099.392093 1920.869958 2325.350686 2373.204991 2607.582446 2865.598185 2871.557813 2005 2119.527398 2032.084078 2659.690387 1998.865279 2179.57672 2609.814035 2680.555919 2900.791934 2574.154635 2292.817665 1735.287973 1408.860053 2006 1235.301979 1338.016697 1700.572528 1558.422809 1643.507911 1642.65456 1371.85547 1597.615942 1556.241354 1660.217324 1555.699477 1792.13055 2007 1783.125356 1621.014412 2078.6918 2377 2461 2361 2155 2312 2127 2194 2025 2252 2008 2360.333333 2629.333333 2870.333333 2859 2734 2467 2358 2250 2043 2263 1392 1850 2009 2911 3286 3296 3117 3220 2949 2484 2077 2065 2198 2220 2499 2010 1566 1230 1524 Historical Residential Loan Closing Volume ** Totals may not foot due to rounding

10 Pre-tax, pre-credit-cost Income ** Totals may not foot due to rounding

11 Deposits ** Totals may not foot due to rounding (1) At the end of the period noted

12 6/30/2008 9/30/2008 12/31/2008 3/31/2009 6/30/2009 9/30/2009 12/31/2009 3/31/2010 Core Deposits * 1514.130899 1417.395316 1474.650037 1645.549502 1906.454951 2189.29382 2247.303354 2247.314304 * Includes checking accounts, savings accounts, and money market accounts (excludes custodial accounts) Growth in Core Deposits

13 (1) Includes residential and consumer Selected Balance Sheet Items ** Totals may not foot due to rounding

14 Residential First Mortgages * As of Mar 31, 2010 ($ in thousands) * Excludes net prem/disc, FAS 91, negative escrow, participation loans and $441 million in Ginnie Mae repurchase option assets Residential First Mortgage Portfolio - by State ** Totals may not foot due to rounding

15 Residential First Mortgages * As of Mar 31, 2010 ($ in thousands) Residential First Mortgage Portfolio - By Current LTV * Excludes net prem/disc, FAS 91, negative escrow, participation loans and $441 million in Ginnie Mae repurchase option assets ** LTV equals current principal balance divided by appraised value at origination ** Totals may not foot due to rounding

16 Residential First Mortgages * As of Mar 31, 2010 ($ in thousands) Residential First Mortgage Portfolio - By Original FICO * Excludes net prem/disc, FAS 91, negative escrow, participation loans and $441 million in Ginnie Mae repurchase option assets ** Totals may not foot due to rounding

Residential First Mortgages * As of Mar 31, 2010 ($ in thousands) Residential First Mortgage Portfolio - By Vintage * Excludes net prem/disc, FAS 91, negative escrow, participation loans and $441 million in Ginnie Mae repurchase option assets ** Totals may not foot due to rounding

18 As of Mar 31, 2010 ($ in 000's) Non Agency Investment Securities Available for Sale Portfolio ** Totals may not foot due to rounding

19 Asset Quality ** Totals may not foot due to rounding

20 Over 90 day delinquent plus matured plus performing non accrual, calculated using OTS method Does not include unallocated reserve Asset Quality By Loan Type - HFI ** Totals may not foot due to rounding

21 As of Mar 31, 2010 ($ in 000's) Real Estate Owned Portfolio ** Totals may not foot due to rounding

22 3/1/2010 2/1/2010 1/1/2010 12/1/2009 11/1/2009 10/1/2009 9/1/2009 8/1/2009 7/1/2009 6/1/2009 5/1/2009 4/1/2009 3/1/2009 2/1/2009 1/1/2009 12/1/2008 11/1/2008 10/1/2008 9/1/2008 8/1/2008 7/1/2008 6/1/2008 30 day delinquent loans 107981 111057 115384 112657 111541 101358 103793 111336 100500 107234 128417 129291 125928 131567 138939 135648 126410 111734 94181 107085 76984 84222 60 day delinquent loans 68770 75022 66907 79775 71566 73425 76434 74936 80462 80371 89521 101227 103422 103478 110269 93628 88254 74374 88320 68045 71656 64039 90+ day and matured delinquent loans 729072 739543 737237 675323 657376 659364 625345 622785 597204 607580 628835 600579 582600 554075 494681 455948 396879 356919 321625 294598 264784 245783 * Includes First Mortgage, Second Mortgage and HELOC portfolios, calculated using OTS method Historical Monthly Delinquency Trends - HFI Mortgage *

23 3/1/2010 2/1/2010 1/1/2010 12/1/2009 11/1/2009 10/1/2009 9/1/2009 8/1/2009 7/1/2009 6/1/2009 5/1/2009 4/1/2009 3/1/2009 2/1/2009 1/1/2009 12/1/2008 30 day delinquent loans 69243 57055 29877 27807 18465 16708 13387 37580 74538 46740 34218 10601 42104 46995 46028 4244 60 day delinquent loans 25584 20256 22346 6818 8202 13980 20921 31716 30183 13348 8760 21297 22736 42539 18263 14289 90+ day and matured delinquent loans * 395801 397716 384860 385687 412628 413473 416534 393952 373878 318768 361720 336017 298218 164127 196066 257307 * Includes performing non accrual commercial RE loans Historical Monthly Delinquency Trends - HFI Commercial RE

24 As of Mar 31, 2010 ($ in 000's) Commercial Real Estate (CRE) Portfolio ** Totals may not foot due to rounding

25 3/31/2010 12/31/2009 9/30/2009 6/30/2009 3/31/2009 12/31/2008 9/30/2008 6/30/2008 3/31/2008 Risk-Based 0.1793 0.1123 0.1206 0.1323 0.1317 0.091 0.111 0.1165 0.1047 Tier 1 (Core) 0.0937 0.058 0.0639 0.0693 0.0697 0.0495 0.0629 0.067 0.0564 Equity to Assets 0.0771 0.0426 0.045 0.0557 0.0554 0.0337 0.0534 0.0549 0.0442 Regulatory Adequately Capitalized 0.08 0.08 0.08 Regulatory Adequately Capitalized 0.04 0.04 0.04 Historical Capital Ratios

26 2010 Outlook

27 Appendix

28 Calculated using OTS method Delinquent Loans by Loan Type - HFI ** Totals may not foot due to rounding

29 HFI Residential First Mortgage Portfolio As of Mar 31, 2010 ($ in 000's) * 90 day + matured and non performing accruals, calculated using OTS method HFI Residential 1st Mortgage Portfolio - by FICO and Current LTV ** Totals may not foot due to rounding

30 Non Performing Loans* As of Mar 31, 2010 ($ in 000's) * 90 day + matured and non performing accruals, calculated using OTS method Non Performing Loans - by State - HFI ** Totals may not foot due to rounding

31 Non Performing Loans* As of Mar 31, 2010 ($ in 000's) * 90 day + matured and non performing accruals, calculated using OTS method Non Performing Loans - by Vintage - HFI ** Totals may not foot due to rounding

32 Commercial Real Estate Portfolio* As of Mar 31, 2010 ($ in 000's) * Excludes Commercial Letters of Credit, CIP, Premium and FAS 91 Commercial Real Estate (CRE) Portfolio - by Vintage ** Totals may not foot due to rounding

33 Commercial Real Estate Portfolio* As of Mar 31, 2010 ($ in 000's) * Excludes Commercial Letters of Credit, CIP, Premium and FAS 91 Commercial Real Estate (CRE) Portfolio by State ** Totals may not foot due to rounding

34