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):January 23, 2013

(Exact name of registrant as specified in its charter)

Michigan	1-16577	38-3150651
(State or other jurisdiction of incorporation)	(Commission File Number)	(I.R.S. Employer 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:

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

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

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

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 January 23, 2013, the Company issued a press release regarding its results of operations and financial condition for the three months and year ended December 31, 2012. The text of the press release is included as Exhibit 99.1 to this report. The Company will include final financial statements and additional analysis for the year ended December 31, 2012 as part of its Annual Report on Form 10-K.

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, as amended (the "Securities Act"), or the Exchange Act regardless of any general incorporation language in such filing.

Item 7.01 Regulation FD Disclosure

On January 24, 2013, the Company held a quarterly conference call to review fourth quarter and full year 2012 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 or the Exchange Act regardless of any general incorporation language in such filing.

Item 9.01 Financial Statements and Exhibits

	Exhibits.
99.1	Press release of Flagstar Bancorp, Inc. dated January 23, 2013
99.2	Flagstar Bancorp, Inc. Conference Call Presentation Slides - Fourth Quarter 2012 Financial Results

This Current Report on Form 8-K contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, as amended. Forward-looking statements, by their nature, involve estimates, projections, goals, forecasts, assumptions, risks and uncertainties that are difficult to predict and could cause actual results or outcomes to differ materially from those expressed in a forward-looking statement. Forward-looking statements contained in this Current Report on Form 8-K and any information related to expectations about future events or results are based upon information available to the Company as of the date hereof. Forward-looking statements can be identified by such words as "anticipates," "intends," "plans," "seeks," "believes," "expects", "estimates," and similar references to future periods. Examples of forward-looking statements include, but are not limited to, statements made regarding the Company's current expectations, plans or forecasts of its core business drivers, credit related costs, asset quality, capital adequacy and liquidity, the implementation of the Company's business plan and growth strategies, the suspension of dividend payments on preferred stock, the deferral of interest payment on trust preferred securities, the result of improvements to the Company's servicing processes, and other similar matters. For a further discussion of the factors that may cause actual results to differ materially from current expectations, please review the Company’s filings with the Securities and Exchange Commission ("SEC"), including but not limited to, the Company’s Forms 10-K and Form 10-Qs. Except to the extent required under the federal securities laws and the rules and regulations promulgated by the SEC, the Company undertakes no obligation to update any such statement to reflect events or circumstances after the date on which it is made.

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: January 24, 2013		By:	/s/    Paul D. Borja
			Paul D. Borja
			Executive Vice-President and Chief Financial Officer

Exhibit Index

Exhibit No.	Description
99.1	Press release of Flagstar Bancorp, Inc. dated January 23, 2013
99.2	Flagstar Bancorp, Inc. Conference Call Presentation Slides - Fourth Quarter 2012 Financial Results

EX-99.1

EXHIBIT 99.1

NEWS RELEASE

For more information, contact:

Paul D. Borja

Chief Financial Officer

Bradley T. Howes

Investor Relations Officer

(248) 312-2000

Flagstar Reports Fourth Quarter and Full Year 2012 Results

Delivers third consecutive quarter of profitability, net income of $223.7 million for 2012

Continues to emphasize risk management, quality control and strengthening and de-risking the balance sheet

TROY, Mich. (January 23, 2013) - Flagstar Bancorp, Inc. (NYSE:FBC) (the "Company"), the holding company for Flagstar Bank, FSB (the "Bank"), today reported fourth quarter 2012 net income applicable to common stockholders of $66.8 million, or $1.12 per share (diluted), as compared to third quarter 2012 net income of $79.7 million, or $1.36 per share (diluted), and a fourth quarter 2011 net loss of $(78.2) million, or $(1.41) per share (diluted). The full year 2012 net income applicable to common stockholders was $223.7 million, or $3.74 per share (diluted), compared to a full year 2011 net loss of $(198.9) million, or $(3.62) per share (diluted).

“We are pleased to report fourth quarter and full year financial results that demonstrate continued performance improvement and sustainable profitability,” said Michael Tierney, President and Chief Executive Officer of the Company. “During the fourth quarter we significantly reduced credit costs, further strengthened and de-risked the balance sheet, and improved the Tier 1 leverage capital ratio by over 100 basis points from the previous quarter. We remain dedicated to building a strong culture of compliance, and we believe that the initiatives we completed during the fourth quarter demonstrate our continued emphasis on quality, risk management and sound governance. Our sustained profitability is a testament to the hard work of Flagstar’s talented employees, and I thank them for their continued dedication.”

Mr. Tierney continued, “With the recently announced sale of a substantial portion of Flagstar's Northeast-based commercial loan portfolio, we are refocusing our business strategy on our national mortgage presence and our Michigan-based community banking model. We remain committed to being the largest bank headquartered in Michigan, through our 111 branches and our commercial banking team, and we look forward to continuing to meet and exceed the needs of our clients and communities. At the same time, we will continually strive to improve our risk management systems and processes, and deliver enhanced value to all of our stakeholders."

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Highlights

• Delivered strong financial performance:

◦ Net income applicable to common stockholders of $66.8 million, or $1.12 per diluted share.

◦ Gain on loan sale income remained strong, at $239.0 million, reflecting a margin of 1.53 percent.

◦ Net interest income increased slightly from the prior quarter to $73.9 million.

◦ Total provisions related to the representation and warranty reserve decreased by 75.2 percent from the prior quarter to $32.5 million.

• Strengthened and de-risked the balance sheet:

◦ Total repurchase pipeline decreased by $201.4 million from the prior quarter to $224.2 million, as the Company continued to work through the existing population of repurchase requests.

◦ Continued to add reserves for pending and threatened litigation.

◦ Entered into a definitive agreement to sell a substantial portion of Northeast-based commercial loan portfolio, which is expected to be capital accretive (discussed in Commercial Loan Sale below).

• Improved capital ratios, liquidity remained strong:

◦ Tier 1 capital ratio (to adjusted total assets) increased by 110 basis points to 10.41 percent.

◦ Cash on hand and interest-earning deposits of approximately $1.0 billion.

• Non-performing loans were flat from prior quarter, but declined significantly from December 31, 2011:

◦ Consumer non-performing loans increased by 13.4 percent from the prior quarter, driven primarily by an increase in performing nonaccrual TDRs, but declined by 19.1 percent from December 31, 2011.

◦ Commercial non-performing loans declined by 29.5 percent from the prior quarter and 14.5 percent from December 31, 2011.

Commercial Loan Sale

As previously announced, effective December 31, 2012 the Bank entered into a definitive Transaction Purchase and Sale Agreement (the "Agreement") with CIT Bank, the wholly-owned U.S. commercial bank subsidiary of CIT Group Inc. (NYSE: CIT) ("CIT"). Under the terms of the Agreement, CIT will acquire $1.3 billion in commercial loan commitments, $785.0 million of which is currently outstanding. The Company expects that the total purchase price for the portfolio will be approximately $779.0 million and that a vast majority of the assets will be sold during the first quarter of 2013.

Net Interest Income

Fourth quarter 2012 net interest income increased slightly to $73.9 million, as compared to $73.1 million for the third quarter 2012. Net interest margin for the Bank also increased to 2.26 percent, as compared to 2.21 percent for the third quarter 2012, driven primarily by an improvement in our funding costs.

Interest income decreased by $4.3 million from the prior quarter, driven primarily by a lower average balance of investment securities available-for-sale primarily resulting from the sale of non-agency collateralized mortgage obligation securities during the third quarter 2012 and lower average balances of loans held-for-investment. Fourth quarter 2012 average yield on interest-earnings assets was 3.44 percent, as compared to 3.54 percent for the third quarter 2012.

Interest expense decreased by $5.2 million during the fourth quarter 2012 from the third quarter 2012, more than offsetting the decline in interest income. The decrease in interest expense from prior quarter was primarily due to an improvement in the funding mix and a lower average cost of deposits.

The Company's average cost of funds for the fourth quarter 2012 was 1.60 percent, a decrease from the third quarter 2012 of 1.73 percent, driven primarily by a decrease in the average rate paid on retail certificates of deposits.

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During the fourth quarter 2012, the Company reduced higher cost retail deposits. The average cost of total deposits decreased during the fourth quarter 2012 to 0.86 percent, as compared to 1.02 percent during the third quarter 2012.

Non-interest Income

Fourth quarter 2012 non-interest income increased to $285.8 million, as compared to $273.7 million for the third quarter 2012. Excluding the provision related to the representation and warranty reserve - change in estimate, which decreased by $99.3 million (discussed in Credit-Related Costs and Asset Quality below), non-interest income would have totaled $311.0 million for the fourth quarter 2012, as compared to $398.2 million for the third quarter 2012. This decrease from the prior quarter was primarily due to lower net gain on loan sales.

Fourth quarter 2012 net gain on loan sales decreased to $239.0 million, as compared to $334.4 million for the third quarter 2012, but increased as compared to $106.9 million for the fourth quarter 2011. The decrease from the prior quarter was reflective of both a decrease in mortgage rate lock commitments and a decrease in margin on rate lock commitments. Mortgage rate lock commitments decreased to $16.2 billion for the fourth quarter 2012, as compared to $18.1 billion for the third quarter 2012, driven by seasonal and competitive mortgage patterns, as well as actions to manage volume levels.

As compared to the fourth quarter 2011, net gain on loan sales increased by $132.1 million, primarily driven by increases in mortgage rate lock commitments and increased margin on rate lock commitments.

Gain on loan sale margin is calculated based on residential first mortgage rate lock commitments and actual sales of residential first mortgage loans, and is net of sales expenses, hedging costs and provisions related to the representation and warranty reserve (i.e., the portion of the reserve established at the time of sale). Gain on loan sale margin decreased to 1.53 percent for the fourth quarter 2012, as compared to 2.42 percent for the third quarter 2012, but increased from 1.02 percent for the fourth quarter 2011. The decrease from the prior quarter was largely attributable to a decrease in gross gain on sale margin, as well as a 12.5 percent increase in mortgage loan sales (which serves as the denominator in computing the reported margin) as compared to the prior quarter. As compared to the fourth quarter 2011, gain on loan sale margin increased by 51 basis points, reflective of strong consumer demand for the refinancing of residential mortgage loans in a declining interest rate environment and fewer competitors in the marketplace.

Loan fees and charges increased to $40.8 million for the fourth quarter 2012, as compared to $37.4 million for the third quarter 2012. Loan fees are driven by mortgage loan originations, which increased to $15.4 billion for the fourth quarter 2012, as compared to $14.5 billion for the third quarter 2012.

Net servicing revenue, which is the combination of net loan administration income (including the off-balance sheet hedges of mortgage servicing rights) and the gain (loss) on trading securities (i.e., the on-balance sheet hedges of mortgage servicing rights), increased to $25.0 million for the fourth quarter 2012, as compared to $11.3 million for the third quarter 2012. This increase from the prior quarter was primarily attributable to effective hedge positioning, despite significant rate volatility intra-quarter and the absence of uncertainty from the central banks with respect to quantitative easing.

The Company also recorded a net loss on sales of mortgage servicing rights of $7.7 million during the fourth quarter 2012, due to bulk sales of mortgage servicing rights related to $13.8 billion in underlying mortgage loans. The Company intends to continue to look for opportunistic ways to reduce its concentration of mortgage servicing rights.

Credit-Related Costs and Asset Quality

For the fourth quarter 2012, total credit-related costs (see non-GAAP reconciliation) decreased to $97.6 million, as compared to $189.7 million for the third quarter 2012 and $173.2 million for the fourth quarter 2011. The declines from the prior quarter, and the same quarter in 2011, were driven primarily by a decrease in representation and

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warranty reserve - change in estimate provisions (exclusive of provisions for representation and warranty reserve which are taken through gain on loan sale income).

The Company maintains a representation and warranty reserve on the balance sheet, which reflects an estimate of losses that may occur on both loans that have been sold or securitized into the secondary market and those currently in the repurchase pipeline, primarily to the GSEs. At December 31, 2012, the representation and warranty reserve was $193.0 million, a decrease as compared to $202.0 million at September 30, 2012, but an increase of $73.0 million as compared to $120.0 million at December 31, 2011. The decrease from the prior quarter includes an $11.0 million reclassification of reserves associated with loans insured by the MBIA Insurance Corporation ("MBIA"). This reclassification reflects the nature of the reserves following the filing by MBIA of its lawsuit against the Bank (discussed in Non-interest Expense below).

Representation and warranty reserve - change in estimate provision was $25.2 million for the fourth quarter 2012, as compared to $124.5 million for the third quarter 2012 and $69.3 million for the fourth quarter 2011. The declines from the prior quarter, and the same quarter in 2011, primarily reflect decreases in net charge-offs of loan repurchases.

At December 31, 2012, the total repurchase pipeline decreased to $224.2 million, as compared to $425.6 million at September 30, 2012, as the Company continued to work through the existing population of repurchase requests. New audit file review requests increased by 12.7 percent from the prior quarter, which management believes is a reflection of the GSEs continuing their reviews as they transition to a new review process.

The provision for loan losses in the fourth quarter 2012 decreased to $50.4 million, as compared to $52.6 million for the third quarter 2012 and $63.5 million for the fourth quarter 2011. At December 31, 2012, the allowance for loan losses remained unchanged at $305.0 million, as compared to September 30, 2012, and decreased as compared to $318.0 million at December 31, 2011. At December 31, 2012, the ratio of the allowance for loan losses to non-performing loans held-for-investment was 76.3 percent, relatively unchanged as compared to 76.5 percent at September 30, 2012, but increased as compared to 65.1 percent at December 31, 2011.

The consumer allowance for loan losses increased to $260.7 million at December 31, 2012, as compared to $244.6 million at September 30, 2012, which reflects management's view of potentially higher losses from re-defaults within the portfolio of troubled debt restructurings ("TDRs"), as well as an increase in the level of TDRs. The total commercial allowance for loan losses decreased to $44.3 million at December 31, 2012, as compared to $60.4 million at September 30, 2012, reflecting the continued run-off in the commercial loan portfolio and reversal of $12.6 million in reserves associated with the December sale of commercial loans under the Agreement with CIT.

Total non-performing loans were $399.8 million as of December 31, 2012, essentially unchanged as compared to $398.9 million at September 30, 2012, but decreased by 18.1 percent from December 31, 2011. Consumer non-performing loans increased to $313.4 million at December 31, 2012, as compared to $276.3 million at September 30, 2012, but decreased by 19.1 percent from December 31, 2011. The increase from the prior quarter was driven primarily by an increase in TDRs, virtually all of which were performing as agreed, as a result of the implementation of the Office of the Comptroller of the Currency guidance on bankruptcies. Commercial non-performing loans decreased to $86.4 million at December 31, 2012, as compared to $122.6 million at September 30, 2012 and $101.0 million at December 31, 2011. The decrease from the prior quarter was primarily driven by continued work-outs and individual note sales within the portfolio.

Asset resolution expense, which includes expenses associated with foreclosed properties (including the foreclosure claims in process with respect to government insured loans for which the Bank files claims with HUD) increased to $21.2 million for the fourth quarter 2012, as compared to $12.5 million for the third quarter 2012, but decreased as compared to $32.4 million for the fourth quarter 2011. The increase from the prior quarter was driven primarily by the recognition of a $7.8 million benefit applied against asset resolution expense in the third quarter 2012, as a result of the Company's participation in a HUD-coordinated market auction of loans repurchased with government guarantees.

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Non-interest Expense

Non-interest expense was $237.0 million for the fourth quarter 2012, as compared to $233.5 million for the third quarter 2012 and $205.8 million for the fourth quarter 2011. Excluding asset resolution expense (discussed in Credit-Related Costs and Asset Quality above), non-interest expense would have totaled $215.7 million for the fourth quarter 2012, as compared to $221.0 million for the third quarter 2012 and $173.4 for the fourth quarter 2011. The decrease in non-interest expense (excluding asset resolution expense) from the prior quarter is primarily due to a $15.2 million decrease in loss on extinguishment of debt resulting from the Company's prepayment of FHLB advances during the third quarter 2012.

As compared to the fourth quarter 2011, the increase in non-interest expense was driven by an increase in compensation and benefits related to significant staffing increases in the default servicing and loss mitigation areas, an increase in commissions driven by increased mortgage loan originations, and an increase in general and administrative expense from additional legal reserves for pending and threatened litigation.

Compensation and benefits increased to $72.1 million for the fourth quarter 2012, as compared to $67.4 million for the third quarter 2012, reflecting incentive compensation and retention expenses. Commission expense also increased to $22.2 million for the fourth quarter 2012, as compared to $19.9 million for the third quarter 2012. This increase from the prior quarter was consistent with an increase in mortgage loan originations during the quarter.

The fourth quarter 2012 general and administrative expense includes approximately $27.0 million with respect to the Company's assessment of exposure from pending and threatened litigation. This includes the reclassification of $11.0 million previously recorded in the representation and warranty reserve. The total amount reserved by the Company for pending and threatened litigation, including amounts paid in anticipation of a future settlement, was approximately $82.7 million at December 31, 2012. Included in this reserve are amounts for the previously disclosed lawsuit filed by Assured Guaranty Municipal Corp., formerly known as Financial Security Assurance Inc. ("Assured"), and for the lawsuit that MBIA filed against the Bank on January 11, 2013. The MBIA claims relate to approximately $1.1 billion of non-agency securitization transactions in 2006 and 2007 involving fixed and adjustable rate second mortgage loans that Flagstar held at the time in its investment portfolio. MBIA guaranteed the offered securities. The Assured and MBIA cases are pending in the United States District Court for the Southern District of New York. The bench trial in the Assured case concluded on November 13, 2012, and the Company expects a decision in late January. Although there can be no assurance as to the ultimate outcome of the Assured and MBIA lawsuits, the Company believes that the Bank has meritorious defenses and intends to continue to defend itself vigorously. The actual costs of resolving the Assured and MBIA claims, and the other pending and threatened litigation, may be materially higher or lower than the amounts reserved.

Capital

The Bank was considered "well-capitalized" for regulatory purposes at December 31, 2012, and had regulatory capital ratios of 10.41 percent for the Tier 1 capital ratio (to adjusted total assets) and 19.16 percent for the total risk-based capital ratio (to risk-weighted assets).

At December 31, 2012, the Company had an equity-to-assets ratio of 9.38 percent.

Balance Sheet and Funding

Total assets at December 31, 2012 were $14.1 billion, as compared to $14.9 billion at September 30, 2012. The decrease from the prior quarter was primarily driven by a decrease in held-for-sale residential first mortgage loans resulting from an excess of residential first mortgage loan sales over residential first mortgage loan originations, and a decrease in commercial real estate loans held-for-investment driven by the Company's continued emphasis on reducing the balances of loans originated prior to 2009. During the quarter, commercial loans related to the Agreement with CIT were transferred from the loans held-for-investment portfolio to the loans held-for-sale portfolio.

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Loans are primarily funded with deposits obtained through branches in Michigan and from public entities. Funds are also obtained through loan repayments and sales of loans and securities in the ordinary course of business, advances from the FHLB in varying maturities depending on current needs, customer escrow accounts and security repurchase agreements. Several of these sources are relied upon at different times to address daily and forecasted liquidity needs for operational requirements and policy levels while managing overall net interest costs and interest rate risk.

Total deposits were $8.3 billion at December 31, 2012, a decrease of $1.2 billion as compared to September 30, 2012. The decrease from the prior quarter was primarily attributable to a $1.2 billion transfer of principal and interest custodian accounts serviced for GSEs to a third party. Retail checking and savings balances increased, more than offsetting a decrease in retail and wholesale certificates of deposit, as the Company continued to replace higher costing funding with core deposits.

At December 31, 2012 and September 30, 2012, the Bank had approximately $1.0 billion of cash on hand and interest-earning deposits. The Bank also maintains a line of credit with the FHLB under which borrowings are collateralized by residential first mortgage loans and other assets of the Bank. At December 31, 2012, the Bank had outstanding borrowings from the FHLB of $3.2 billion, as compared to $3.1 billion at September 30, 2012. At December 31, 2012, the Bank had an additional $1.1 billion of collateralized borrowing capacity available at the FHLB.

Earnings Conference Call

As previously announced, the Company's quarterly earnings conference call will be held on Thursday, January 24, 2013 from 11 a.m. until Noon (Eastern).

Questions may be asked during the conference call or by emailing questions in advance to investors@flagstar.com

To join the call, please dial (800) 684-1259 toll free or (913) 312-1503, and use passcode: 3359641. Please call at least 10 minutes before the call is scheduled to begin. A replay will be available for five business days by calling (888) 203-1112 toll free or (719) 457-0820, using passcode: 3359641.

The conference call will also be available as a live audiocast on the Investor Relations section of flagstar.com. It will be archived on that site and will be available for replay and download. A slide presentation to accompany the conference call will also be posted on the site.

About Flagstar

Flagstar Bancorp, Inc. (NYSE: FBC) is the holding company for Flagstar Bank, a full-service financial institution offering a range of products and services to consumers, businesses, and homeowners. With $14.1 billion in total assets at December 31, 2012, Flagstar is the largest publicly held savings bank headquartered in the Midwest. Flagstar originates loans nationwide and is one of the leading originators of residential first mortgage loans. For more information, please visit flagstar.com.

Non-GAAP

This press release contains both financial measures based on accounting principles generally accepted in the United States (GAAP) and non-GAAP based financial measures, which are used where management believes it to be helpful in understanding the Company's results of operations or financial position. Where non-GAAP financial measures are used, the comparable GAAP financial measure, as well as the reconciliation to the comparable GAAP financial measure, can be found in this press release. These disclosures should not be viewed as a substitute for operating results determined in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures that may be presented by other companies.

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Forward Looking Statements

This press release contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, as amended. Forward-looking statements, by their nature, involve estimates, projections, goals, forecasts, assumptions, risks and uncertainties that are difficult to predict and could cause actual results or outcomes to differ materially from those expressed in a forward-looking statement. Forward-looking statements contained in this press release and any information related to expectations about future events or results are based upon information available to the Company as of the date hereof. Forward-looking statements can be identified by such words as "anticipates," "intends," "plans," "seeks," "believes," "expects", "estimates," and similar references to future periods. Examples of forward-looking statements include, but are not limited to, statements made regarding the Company's current expectations, plans or forecasts of its core business drivers, credit related costs, asset quality, capital adequacy and liquidity, the implementation of the Company's business plan and growth strategies, the suspension of dividend payments on preferred stock, the deferral of interest payment on trust preferred securities, the result of improvements to the Company's servicing processes, and other similar matters. Although we believe that these forward-looking statements are based on reasonable estimates and assumptions, they are not guarantees of future performance and are subject to known and unknown risks, uncertainties, contingencies, and other factors. Accordingly, we cannot give you any assurance that our expectations will in fact occur or that actual results will not differ materially from those expressed or implied by such forward-looking statements. We caution you not to place undue reliance on any forward-looking statement and to consider all of the following uncertainties and risks, as well as those more fully discussed in the Company's filings with the Securities and Exchange Commission ("SEC"), including, but not limited to, our Forms 10-K and 10-Q: volatile interest rates that impact, among other things, the mortgage banking business, our ability to originate loans and sell assets at a profit, prepayment speeds and our cost of funds; changes in regulatory capital requirements or an inability to achieve or maintain desired capital ratios; actions of mortgage loan purchasers, guarantors and insurers regarding repurchases and indemnity demands and uncertainty related to foreclosure procedures; uncertainty regarding pending and threatened litigation; our ability to control credit related costs and forecast the adequacy of reserves; the imposition of regulatory enforcement actions against us; our compliance with the Consent Order with the Office of the Comptroller of the Currency, which was disclosed on October 23, 2012; and the commercial loan sale may not have the projected impact or be consummated in a timely manner. Except to the extent required under the federal securities laws and the rules and regulations promulgated by the SEC, the Company undertakes no obligation to update any such statement to reflect events or circumstances after the date on which it is made.

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Flagstar Bancorp, Inc.

Consolidated Statements of Financial Condition

(In thousands, except share data)

	December 31, 2012			September 30, 2012			December 31, 2011
Assets	(Unaudited)			(Unaudited)
Cash and cash items	$	38,070		$	53,883		$	49,715
Interest-earning deposits	914,723			949,514			681,343
Cash and cash equivalents	952,793			1,003,397			731,058
Securities classified as trading	170,086			170,073			313,383
Securities classified as available-for-sale	184,445			198,861			481,352
Loans held-for-sale	3,791,188			3,251,936			1,800,885
Loans repurchased with government guarantees	1,841,342			1,931,163			1,899,267
Loans held-for-investment	5,586,633			6,552,399			7,038,587
Less: allowance for loan losses	(305,000		)	(305,000		)	(318,000		)
Loans held-for-investment, net	5,281,633			6,247,399			6,720,587
Total interest-earning assets	12,183,417			12,748,946			11,896,817
Accrued interest receivable	91,992			106,458			105,200
Repossessed assets, net	120,732			119,468			114,715
Federal Home Loan Bank stock	301,737			301,737			301,737
Premises and equipment, net	219,059			211,981			203,578
Mortgage servicing rights	710,791			686,799			510,475
Other assets	416,214			669,950			455,236
Total assets	$	14,082,012		$	14,899,222		$	13,637,473
Liabilities and Stockholders' Equity
Deposits	$	8,294,295		$	9,489,169		$	7,689,988
Federal Home Loan Bank advances	3,180,000			3,088,000			3,953,000
Long-term debt	247,435			248,560			248,585
Total interest-bearing liabilities	11,721,730			12,825,729			11,891,573
Accrued interest payable	13,420			12,522			8,723
Representation and warranty reserve	193,000			202,000			120,000
Other liabilities	833,500			608,372			537,461
Total liabilities	12,761,650			13,648,623			12,557,757
Stockholders' Equity
Preferred stock	260,390			258,973			254,732
Common stock	559			558			556
Additional paid in capital	1,476,569			1,475,380			1,471,463
Accumulated other comprehensive loss	(1,658		)	(2,042		)	(7,819		)
Accumulated deficit	(415,498		)	(482,270		)	(639,216		)
Total stockholders' equity	1,320,362			1,250,599			1,079,716
Total liabilities and stockholders' equity	$	14,082,012		$	14,899,222		$	13,637,473

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Flagstar Bancorp, Inc.  Consolidated Statements of Operations  (In thousands, except per share data)
	For the Three Months Ended									For the Year Ended
	December 31, 2012			September 30, 2012			December 31, 2011			December 31, 2012			December 31, 2011
	(Unaudited)			(Unaudited)			(Unaudited)			(Unaudited)
Interest Income
Loans	$	112,464		$	114,158		$	116,790		$	456,141		$	427,022
Securities classified as available-for-sale  or trading	2,277			4,912			8,929			22,609			35,602
Interest-earning deposits and other	674			672			426			2,220			2,785
Total interest income	115,415			119,742			126,145			480,970			465,409
Interest Expense
Deposits	15,017			17,819			20,944			70,143			95,546
FHLB advances	24,756			27,091			27,646			106,625			117,963
Other	1,701			1,753			1,692			6,971			6,527
Total interest expense	41,474			46,663			50,282			183,739			220,036
Net interest income	73,941			73,079			75,863			297,231			245,373
Provision for loan losses	50,351			52,595			63,548			276,047			176,931
Net interest income after provision for loan losses	23,590			20,484			12,315			21,184			68,442
Non-Interest Income
Loan fees and charges	40,793			37,359			28,610			142,908			77,843
Deposit fees and charges	5,154			5,255			6,332			20,370			29,629
Loan administration	25,010			11,099			28,295			100,007			94,604
Gain on trading securities	12			237			674			(2,011		)	21,088
Loss on transferors' interest	(780		)	(118		)	(847		)	(2,552		)	(5,673		)
Net gain on loan sales	238,953			334,427			106,919			990,898			300,789
Net loss on sales of mortgage servicing rights	(7,687		)	(1,332		)	(2,823		)	(12,319		)	(7,903		)
Net (loss) gain on securities available-for-sale	(310		)	2,616			—			2,636			—
Net gain on sale of assets	—			—			21,379			—			22,676
Total other-than-temporary impairment     (loss) gain	—			—			(11,569		)	2,810			(30,456		)
Gain (loss) recognized in other comprehensive income before taxes	—			—			4,437			(5,002		)	6,417
Net impairment losses recognized in  earnings	—			—			(7,132		)	(2,192		)	(24,039		)
Representation and warranty reserve -  change in estimate	(25,231		)	(124,492		)	(69,279		)	(256,289		)	(150,055		)
Other fees and charges, net	9,881			8,686			6,493			39,786			26,557
Total non-interest income	285,795			273,737			118,621			1,021,242			385,516

9

Flagstar Bancorp, Inc.  Consolidated Statements of Operations  (In thousands, except per share data)
	For the Three Months Ended									For the Year Ended
	December 31, 2012			September 30, 2012			December 31, 2011			December 31, 2012			December 31, 2011
	(Unaudited)			(Unaudited)			(Unaudited)			(Unaudited)
Non-Interest Expense
Compensation and benefits	72,081			67,386			60,011			270,859			224,711
Commissions	22,154			19,888			14,151			75,345			39,345
Occupancy and equipment	19,184			18,833			19,448			73,674			70,117
Asset resolution	21,241			12,487			32,408			91,349			128,313
Federal insurance premiums	12,202			12,643			11,401			49,273			41,581
Other taxes	856			2,036			606			4,219			2,784
Warrant expense (income)	5,422			1,516			138			8,935			(6,889		)
Loss on extinguishment of debt	—			15,246			—			15,246			—
General and administrative	83,822			83,456			67,674			239,795			134,718
Total non-interest expense	236,962			233,491			205,837			828,695			634,680
Income (loss) before federal income taxes	72,423			60,730			(74,901		)	213,731			(180,722		)
Provision (benefit) for federal income taxes	4,235			(20,380		)	264			(15,645		)	1,056
Net income (loss)	68,188			81,110			(75,165		)	229,376			(181,778		)
Preferred stock dividend/accretion (1)	(1,417		)	(1,417		)	(3,016		)	(5,658		)	(17,165		)
Net income (loss) applicable to common  stockholders	$	66,771		$	79,693		$	(78,181	)	$	223,718		$	(198,943	)
Income (loss) per share
Basic (2)	$	1.13		$	1.37		$	(1.41	)	$	3.77		$	(3.62	)
Diluted (2)	$	1.12		$	1.36		$	(1.41	)	$	3.74		$	(3.62	)

(1) The preferred stock dividend/accretion for the three months ended December 31, 2012 and September 30, 2012 and the year ended December 31, 2012, respectively, represents only the accretion. On January 27, 2012, the Company elected to defer payment of dividends and interest on the preferred stock.

(2) The three months and year ended December 31, 2011 have been restated for a one-for-ten reverse stock split announced September 27, 2012 and began trading on October 11, 2012.

10

Flagstar Bancorp, Inc.

Summary of Selected Consolidated Financial and Statistical Data

(Dollars in thousands, except per share data)

(Unaudited)

	For the Three Months Ended									For the Year Ended
	December 31, 2012			September 30, 2012			December 31, 2011			December 31, 2012			December 31, 2011
Return on average assets	1.78		%	2.10		%	(2.21		)%	1.52		%	(1.49		)%
Return on average equity	20.70		%	25.78		%	(27.56		)%	18.76		%	(16.78		)%
Efficiency ratio	65.9		%	67.3		%	105.8		%	62.9		%	100.6		%
Efficiency ratio (credit-adjusted) (1)	56.0		%	46.9		%	65.8		%	46.8		%	64.8		%
Equity-to-assets ratio (average for the period)	8.59		%	8.16		%	8.02		%	8.10		%	8.88		%
Mortgage loans originated (2)	$	15,356,795		$	14,513,635		$	10,187,100		$	53,586,856		$	26,612,800
Other loans originated	$	113,458		$	165,668		$	199,529		$	754,155		$	700,969
Mortgage loans sold and securitized	$	15,610,590		$	13,876,626		$	10,476,542		$	53,094,326		$	27,451,362
Interest rate spread - bank only (3)	1.87		%	1.84		%	2.15		%	1.98		%	1.86		%
Net interest margin - bank only (4)	2.26		%	2.21		%	2.43		%	2.31		%	2.13		%
Interest rate spread - consolidated (3)	1.84		%	1.81		%	2.13		%	1.96		%	1.85		%
Net interest margin - consolidated (4)	2.21		%	2.16		%	2.37		%	2.26		%	2.07		%
Average common shares outstanding (5)	55,842,910			55,801,692			55,535,992			55,762,196			55,434,296
Average fully diluted shares outstanding (5)	56,520,403			56,233,165			55,535,992			56,193,515			55,434,296
Average interest-earning assets	$	13,349,991		$	13,476,917		$	12,752,968		$	13,104,401		$	11,803,670
Average interest paying liabilities	$	10,318,385		$	10,737,734		$	11,018,201		$	10,786,253		$	10,530,369
Average stockholder's equity	$	1,290,082		$	1,236,411		$	1,134,716		$	1,192,721		$	1,185,731
Charge-offs to average investment loans (annualized)	3.18		%	2.12		%	1.60		%	4.43		%	2.14		%

	December 31, 2012			September 30, 2012			December 31, 2011
Equity-to-assets ratio	9.38		%	8.39		%	7.92		%
Tier 1 capital ratio (to adjusted total assets) (6)	10.41		%	9.31		%	8.95		%
Total risk-based capital ratio (to risk-weighted assets) (6)	19.16		%	17.58		%	16.64		%
Book value per common share (5)	$	18.97		$	17.76		$	14.80
Number of common shares outstanding (5)	55,863,053			55,828,470			55,577,564
Mortgage loans serviced for others	$	76,821,222		$	82,414,799		$	63,770,676
Weighted average service fee (basis points)	29.2			30.1			30.8
Capitalized value of mortgage servicing rights	0.93		%	0.83		%	0.80		%
Ratio of allowance for loan losses to non-performing loans held-for-investment (7)	76.3		%	76.5		%	65.1		%
Ratio of allowance for loan losses to loans held-for-investment (7)	5.46		%	4.65		%	4.52		%
Ratio of non-performing assets to total assets (bank only)	3.70		%	3.48		%	4.43		%
Number of bank branches	111			111			113
Number of loan origination centers	31			31			27
Number of employees (excluding loan officers and account executives)	3,328			3,240			2,839
Number of loan officers and account executives	334			336			297

(1) See Non-GAAP reconciliation.

(2) Includes residential first mortgage and second mortgage loans.

(3) Interest rate spread is the difference between the annualized average yield earned on average interest-earning assets for the period and the annualized average rate of interest paid on average interest-bearing liabilities for the period.

(4) Net interest margin is the annualized effect of the net interest income divided by that period's average interest-earning assets.

(5) Restated for a 1-for-10 reverse stock split announced September 27, 2012 and began trading on October 11, 2012.

(6) Based on adjusted total assets for purposes of core capital and risk-weighted assets for purposes of total risk-based capital. These ratios are applicable to the Bank only.

(7) Bank only and does not include non-performing loans held-for-sale.

11

Loan Originations (Dollars in thousands) (Unaudited)
	For the Three Months Ended
	December 31, 2012				September 30, 2012				December 31, 2011
Consumer loans
Mortgage (1)	$	15,356,795	99.3	%	$	14,513,635	98.8	%	$	10,187,100	98.1	%
Other consumer (2)	7,589		—	%	8,489		0.1	%	3,033		—	%
Total consumer loans	15,364,384		99.3	%	14,522,124		98.9	%	10,190,133		98.1	%
Commercial loans (3)	105,869		0.7	%	157,179		1.1	%	196,496		1.9	%
Total loan originations	$	15,470,253	100.0	%	$	14,679,303	100.0	%	$	10,386,629	100.0	%

	For the Year Ended
	December 31, 2012				December 31, 2011
Consumer loans
Mortgage (1)	$	53,586,856	98.6	%	$	26,612,800	97.4	%
Other consumer (2)	27,058		0.1	%	11,024		0.1	%
Total consumer loans	53,613,914		98.7	%	26,623,824		97.5	%
Commercial loans (3)	727,097		1.3	%	689,945		2.5	%
Total loan originations	$	54,341,011	100.0	%	$	27,313,769	100.0	%

(1) Includes residential first mortgage and second mortgage loans.

(2) Other consumer loans include: warehouse lending, HELOC and other consumer loans.

(3) Commercial loans include: commercial real estate, commercial and industrial and commercial lease financing loans.

Loans Held-for-Investment

(Dollars in thousands)

(Unaudited)

	December 31, 2012				September 30, 2012				December 31, 2011
Consumer loans
Residential first mortgage	$	3,009,251	53.9	%	$	3,086,096	47.1	%	$	3,749,821	53.1	%
Second mortgage	114,885		2.1	%	122,286		1.9	%	138,912		2.0	%
Warehouse lending	1,347,727		24.1	%	1,307,292		20.0	%	1,173,898		16.7	%
HELOC	179,447		3.2	%	192,117		2.9	%	221,986		3.2	%
Other	49,611		0.9	%	53,188		0.8	%	67,613		1.0	%
Total consumer loans	4,700,921		84.2	%	4,760,979		72.7	%	5,352,230		76.0	%
Commercial loans
Commercial real estate	689,424		12.3	%	1,005,498		15.3	%	1,242,969		17.7	%
Commercial and industrial	189,988		3.4	%	597,273		9.1	%	328,879		4.7	%
Commercial lease financing	6,300		0.1	%	188,649		2.9	%	114,509		1.6	%
Total commercial loans	885,712		15.8	%	1,791,420		27.3	%	1,686,357		24.0	%
Total loans held-for-investment	$	5,586,633	100.0	%	$	6,552,399	100.0	%	$	7,038,587	100.0	%

12

Allowance for Loan Losses

(Dollars in thousands)

(Unaudited)

	For the Three Months Ended									For the Year Ended
	December 31, 2012			September 30, 2012			December 31, 2011			December 31, 2012			December 31, 2011
Beginning balance	$	305,000		$	287,000		$	282,000		$	318,000		$	274,000
Provision for loan losses	50,351			52,595			63,548			276,047			176,931
Charge-offs
Consumer loans
Residential first mortgage	(33,802		)	(23,999		)	(19,042		)	(175,803		)	(41,559		)
Second mortgage	(5,423		)	(3,990		)	(2,672		)	(18,753		)	(19,217		)
Warehouse lending	—			—			(562		)	—			(1,122		)
HELOC	(5,000		)	(1,483		)	(3,515		)	(17,159		)	(16,980		)
Other	(1,613		)	(892		)	(916		)	(4,423		)	(4,729		)
Total consumer loans	(45,838		)	(30,364		)	(26,707		)	(216,138		)	(83,607		)
Commercial loans
Commercial real estate	(13,443		)	(15,532		)	(2,527		)	(105,285		)	(57,626		)
Commercial and industrial	(3,011		)	(12		)	—			(4,627		)	(644		)
Commercial lease financing	(1,191		)	—			—			(1,191		)	—
Total commercial loans	(17,645		)	(15,544		)	(2,527		)	(111,103		)	(58,270		)
Total charge-offs	(63,483		)	(45,908		)	(29,234		)	(327,241		)	(141,877		)
Recoveries
Consumer loans
Residential first mortgage	5,530			5,899			401			18,561			1,656
Second mortgage	196			428			65			1,912			1,642
Warehouse lending	—			—			—			—			5
HELOC	67			44			57			461			1,510
Other	731			448			319			1,786			1,603
Total consumer loans	6,524			6,819			842			22,720			6,416
Commercial loans
Commercial real estate	6,600			4,461			844			15,397			2,408
Commercial and industrial	8			33			—			77			122
Total commercial loans	6,608			4,494			844			15,474			2,530
Total recoveries	13,132			11,313			1,686			38,194			8,946
Charge-offs, net of recoveries	(50,351		)	(34,595		)	(27,548		)	(289,047		)	(132,931		)
Ending balance	$	305,000		$	305,000		$	318,000		$	305,000		$	318,000
Net charge-off ratio (annualized)	3.18		%	2.12		%	1.60		%	4.43		%	2.14		%

Representation and Warranty Reserve

(Dollars in thousands)

(Unaudited)

		For the Three Months Ended									For the Year Ended
		December 31, 2012			September 30, 2012			December 31, 2011			December 31, 2012			December 31, 2011
		(Dollars in thousands)
Balance, beginning of period		$	202,000		$	161,000		$	85,000		$	120,000		$	79,400
Provision
	Charged to gain on sale for current loan sales	7,285			6,432			3,481			24,410			8,993
	Charged to representation and warranty reserve - change in estimate	25,231			124,492			69,280			256,289			150,055
	Total	32,516			130,924			72,761			280,699			159,048
Charge-offs, net		(41,516		)	(89,924		)	(37,761		)	(207,699		)	(118,448		)
Balance, end of period		$	193,000		$	202,000		$	120,000		$	193,000		$	120,000

13

Composition of Allowance for Loan Losses

(In thousands)

(Unaudited)

December 31, 2012	Collectively Evaluated Reserves (1)		Individually Evaluated Reserves (2)		Total
Consumer loans
Residential first mortgage	$	68,685	$	150,545	$	219,230
Second mortgage	13,173		7,028		20,201
Warehouse lending	899		—		899
HELOC	15,274		3,074		18,348
Other	2,040		—		2,040
Total consumer loans	100,071		160,647		260,718
Commercial loans
Commercial real estate	38,772		2,538		41,310
Commercial and industrial	2,868		10		2,878
Commercial lease financing	94		—		94
Total commercial loans	41,734		2,548		44,282
Total allowance for loan losses	$	141,805	$	163,195	$	305,000

September 30, 2012
Consumer loans
Residential first mortgage	$	74,950	$	129,902	$	204,852
Second mortgage	12,478		6,410		18,888
Warehouse lending	1,038		—		1,038
HELOC	15,216		2,340		17,556
Other	2,229		—		2,229
Total consumer loans	105,911		138,652		244,563
Commercial loans
Commercial real estate	47,113		1,722		48,835
Commercial and industrial	8,857		20		8,877
Commercial lease financing	2,725		—		2,725
Total commercial loans	58,695		1,742		60,437
Total allowance for loan losses	$	164,606	$	140,394	$	305,000

(1) Represents loans collectively evaluated for impairment in accordance with ASC 450-20, Loss Contingencies (formerly FAS 5), and pursuant to amendments by ASU 2010-20 regarding allowance for unimpaired loans.

(2) Represents loans individually evaluated for impairment in accordance with ASC 310-10, Receivables (formerly FAS 114), and pursuant to amendments by ASU 2010-20 regarding allowance for impaired loans.

Non-Performing Loans and Assets

(Dollars in thousands)

(Unaudited)

	December 31, 2012			September 30, 2012			December 31, 2011
Non-performing loans held-for-investment	$	399,825		$	398,948		$	488,367
Real estate and other non-performing assets, net	120,732			119,468			114,715
Non‑performing assets held-for-investment, net	520,557			518,416			603,082
Non-performing loans held-for-sale	1,835			2,086			4,573
Total non-performing assets including loans held-for-sale	$	522,392		$	520,502		$	607,655
Ratio of non-performing assets to total assets (Bank only)	3.70		%	3.48		%	4.43		%
Ratio of non-performing loans held-for-investment to loans held-for-investment	7.16		%	6.09		%	6.94		%
Ratio of non-performing assets to loans held for investment and repossessed assets	9.12		%	7.77		%	8.43		%

14

Asset Quality - Loans Held-for-Investment

(Dollars in thousands)

(Unaudited)

	30-59 Days Past Due		60-89 Days Past Due		Greater than 90 days		Total Past Due		Total Investment Loans
December 31, 2012
Consumer loans (1)	$	66,687	$	18,578	$	313,418	$	398,683	$	4,700,921
Commercial loans (1)	6,979		6,990		86,408		100,377		885,712
Total loans	$	73,666	$	25,568	$	399,826	$	499,060	$	5,586,633
September 30, 2012
Consumer loans (1)	$	53,919	$	26,697	$	276,319	$	356,935	$	4,760,979
Commercial loans (1)	9,563		432		122,629		132,624		1,791,420
Total loans	$	63,482	$	27,129	$	398,948	$	489,559	$	6,552,399
December 31, 2011
Consumer loans (1)	$	83,670	$	41,602	$	387,362	$	512,634	$	5,352,230
Commercial loans (1)	7,464		12,385		101,005		120,854		1,686,357
Total loans	$	91,134	$	53,987	$	488,367	$	633,488	$	7,038,587

(1) Consumer loans include: residential first mortgage, second mortgage, warehouse lending, HELOC, and other consumer loans. Commercial loans include: commercial real estate, commercial and industrial, and commercial lease financing loans.

Troubled Debt Restructurings

(Dollars in thousands)

(Unaudited)

	TDRs
	Performing		Non-performing		Total
December 31, 2012	(Dollars in thousands)
Consumer loans	$	588,475	$	143,188	$	731,663
Commercial loans	1,287		2,056		3,343
Total TDRs	$	589,762	$	145,244	$	735,006
September 30, 2012
Consumer loans	$	612,956	$	106,250	$	719,206
Commercial loans	1,329		3,230		4,559
Total TDRs	$	614,285	$	109,480	$	723,765
December 31, 2011
Consumer loans	$	499,438	$	167,076	$	666,514
Commercial loans	17,737		29,509		47,246
Total TDRs	$	517,175	$	196,585	$	713,760

15

Gain on Loan Sales and Securitizations

(Dollars in thousands)

(Unaudited)

	For the Three Months Ended
	December 31, 2012					September 30, 2012					December 31, 2011
Description	(000's)			bps		(000's)			bps		(000's)			bps
Valuation gain (loss)
Value of interest rate locks	$	(143,364	)	(94	)	$	97,176		73		$	(19,033	)	(18	)
Value of forward sales	123,602			82		(91,329		)	(68	)	17,793			17
Fair value of loans held-for-sale	213,512			138		273,270			198		96,911			92
LOCOM adjustments on loans held-for-investment	(1,103		)	(1	)	—			—		—			—
Total valuation gains	192,647			125		279,117			203		95,671			91
Sales gains (losses)
Marketing gains, net of adjustments	161,163			103		218,262			157		73,560			70
Pair-off (losses) gains	(107,572		)	(70	)	(156,520		)	(113	)	(58,831		)	(56	)
Provision for representation and warranty reserve	(7,285		)	(5	)	(6,432		)	(5	)	(3,481		)	(3	)
Total sales gains	46,306			28		55,310			39		11,248			11
Total gain on loan sales and securitizations	$	238,953		153		$	334,427		242		$	106,919		102
Total mortgage rate lock commitments volume	$	16,242,000				$	18,089,000				$	11,230,000
Total loan sales and securitizations	$	15,610,590				$	13,876,626				$	10,476,542

	For the Year Ended
	December 31, 2012					December 31, 2011
Description	(000's)			bps		(000's)			bps
Valuation gain (loss)
Value of interest rate locks	$	15,235		3		$	56,569		21
Value of forward sales	28,957			5		(78,798		)	(29	)
Fair value of loans held-for-sale	784,587			148		356,278			130
LOCOM adjustments on loans held-for-investment	(1,124		)	—		16			—
Total valuation gains	827,655			156		334,065			122
Sales gains (losses)
Marketing gains, net of adjustments	731,648			138		191,118			69
Pair-off (losses) gains	(543,995		)	(102	)	(215,402		)	(78	)
Provision for representation and warranty reserve	(24,410		)	(5	)	(8,993		)	(3	)
Total sales gains	163,243			31		(33,277		)	(12	)
Total gain on loan sales and securitizations	$	990,898		187		$	300,788		110
Total mortgage rate lock commitments volume	$	66,732,000				$	36,281,000
Total loan sales and securitizations	$	53,094,326				$	27,451,362

16

Average Balances, Yields and Rates

(Dollars in thousands)

(Unaudited)

	For the Three Months Ended
	December 31, 2012				September 30, 2012				December 31, 2011
	Average Balance		Annualized Yield/Rate		Average Balance		Annualized Yield/Rate		Average Balance		Annualized Yield/Rate
Interest-Earning Assets
Loans held-for-sale	$	3,631,780	3.47	%	$	3,301,860	3.70	%	$	2,468,813	3.94	%
Loans repurchased with government guarantees	1,912,722		3.13	%	2,070,813		2.98	%	1,849,827		3.44	%
Loans held-for-investment
Consumer loans (1)	4,608,093		4.28	%	4,717,672		4.32	%	5,288,088		4.37	%
Commercial loans (1)	1,724,223		3.78	%	1,815,897		3.67	%	1,620,132		4.53	%
Loans held-for-investment	6,332,316		4.14	%	6,533,569		4.14	%	6,908,220		4.40	%
Securities classified as available-for-sale or trading	362,819		2.51	%	505,361		3.89	%	813,865		4.39	%
Interest-earning deposits and other	1,110,354		0.24	%	1,065,314		0.25	%	712,242		0.24	%
Total interest-earning assets	13,349,991		3.44	%	13,476,917		3.54	%	12,752,967		3.94	%
Other assets	1,670,359				1,680,208				1,401,566
Total assets	$	15,020,350			$	15,157,125			$	14,154,533
Interest-Bearing Liabilities
Retail deposits
Demand deposits	$	379,721	0.28	%	$	364,612	0.27	%	$	382,419	0.29	%
Savings deposits	1,891,901		0.68	%	1,768,897		0.65	%	1,432,094		0.81	%
Money market deposits	427,792		0.43	%	457,425		0.46	%	531,981		0.61	%
Certificate of deposits	3,253,647		1.02	%	3,227,201		1.21	%	3,010,919		1.52	%
Total retail deposits	5,953,061		0.82	%	5,818,135		0.92	%	5,357,413		1.15	%
Government deposits
Demand deposits	81,555		0.44	%	107,944		0.48	%	82,278		0.52	%
Savings deposits	287,289		0.51	%	291,046		0.55	%	379,959		0.60	%
Certificate of deposits	444,668		0.62	%	375,922		0.64	%	407,386		0.60	%
Total government deposits	813,512		0.56	%	774,912		0.58	%	869,623		0.60	%
Wholesale deposits	157,960		4.04	%	334,595		3.77	%	464,104		3.47	%
Total deposits	6,924,533		0.86	%	6,927,642		1.02	%	6,691,140		1.24	%
FHLB advances	3,145,341		3.13	%	3,561,532		3.03	%	4,078,476		2.69	%
Other	248,511		2.72	%	248,560		2.81	%	248,585		2.70	%
Total interest-bearing liabilities	10,318,385		1.60	%	10,737,734		1.73	%	11,018,201		1.81	%
Other liabilities (2)	3,411,883				3,182,980				2,001,616
Stockholder's equity	1,290,082				1,236,411				1,134,716
Total liabilities and stockholder's equity	$	15,020,350			$	15,157,125			$	14,154,533

(1) Consumer loans include: residential first mortgage, second mortgage, warehouse lending, HELOC and other consumer loans. Commercial loans include: commercial real estate, commercial and industrial, and commercial lease financing loans.

(2) Includes company controlled deposits that arise due to the servicing of loans for others, which do not bear interest.

17

Average Balances, Yields and Rates

(Dollars in thousands)

(Unaudited)

	For the Year Ended
	December 31, 2012				December 31, 2011
	Average Balance		Annualized Yield/Rate		Average Balance		Annualized Yield/Rate
Interest-Earning Assets
Loans held-for-sale	$	3,078,284	3.75	%	$	1,928,339	4.31	%
Loans repurchased with government guarantees	2,018,079		3.22	%	1,784,927		3.19	%
Loans held-for-investment
Consumer loans (1)	4,737,553		4.33	%	4,830,127		4.58	%
Commercial loans (1)	1,782,913		3.91	%	1,373,566		4.74	%
Loans held-for-investment	6,520,466		4.21	%	6,203,693		4.61	%
Securities classified as available-for-sale or trading	573,445		3.94	%	752,871		4.73	%
Interest-earning deposits and other	914,127		0.24	%	1,133,840		0.25	%
Total interest-earning assets	13,104,401		3.66	%	11,803,670		3.94	%
Other assets	1,622,369				1,544,924
Total assets	$	14,726,770			$	13,348,594
Interest-Bearing Liabilities
Retail deposits
Demand deposits	$	363,247	0.26	%	$	397,988	0.33	%
Savings deposits	1,775,449		0.72	%	1,236,105		0.81	%
Money market deposits	463,490		0.48	%	561,943		0.69	%
Certificate of deposits	3,170,103		1.21	%	3,001,586		1.75	%
Total retail deposits	5,772,289		0.94	%	5,197,622		1.30	%
Government deposits
Demand deposits	96,000		0.48	%	77,702		0.54	%
Savings deposits	280,313		0.55	%	414,394		0.64	%
Certificate of deposits	393,731		0.64	%	296,830		0.62	%
Total government deposits	770,044		0.59	%	788,926		0.62	%
Wholesale deposits	296,997		3.80	%	674,856		3.41	%
Total deposits	6,839,330		1.03	%	6,661,404		1.43	%
FHLB advances	3,698,362		2.88	%	3,620,368		3.26	%
Other	248,561		2.80	%	248,597		2.63	%
Total interest-bearing liabilities	10,786,253		1.70	%	10,530,369		2.09	%
Other liabilities (2)	2,747,796				1,632,494
Stockholder's equity	1,192,721				1,185,731
Total liabilities and stockholder's equity	$	14,726,770			$	13,348,594

(1) Consumer loans include: residential first mortgage, second mortgage, warehouse lending, HELOC and other consumer loans. Commercial loans include: commercial real estate, commercial and industrial, and commercial lease financing loans.

(2) Includes company controlled deposits that arise due to the servicing of loans for others, which do not bear interest.

18

Non-GAAP Reconciliation

(Dollars in thousands)

(Unaudited)

	For the Three Months Ended									For the Year Ended
	December 31, 2012			September 30, 2012			December 31, 2011			December 31, 2012			December 31, 2011
Pre-tax, pre-credit-cost revenue
Income (loss) before tax provision	$	72,423		$	60,730		$	(74,901	)	$	213,731		$	(180,722	)
Add back
Provision for loan losses	50,351			52,595			63,548			276,047			176,931
Asset resolution	21,241			12,487			32,408			91,349			128,313
Other than temporary impairment on AFS investments	—			—			7,132			2,192			24,039
Representation and warranty reserve - change in estimate	25,231			124,492			69,279			256,289			150,055
Write down of residual interest	780			118			847			2,552			5,673
Total credit-related costs	97,603			189,692			173,214			628,429			485,011
Pre-tax, pre-credit-cost net revenue	$	170,026		$	250,422		$	98,313		$	842,160		$	304,289
Efficiency ratio (credit-adjusted)
Net interest income (a)	$	73,941		$	73,079		$	75,863		$	297,231		$	245,373
Non-interest income (b)	285,795			273,737			118,621			1,021,242			385,516
Add: Representation and warranty reserve - change in estimate (d)	25,231			124,492			69,279			256,289			150,055
Adjusted income	384,967			471,308			263,763			1,574,762			780,944
Non-interest expense (c)	236,962			233,491			205,837			828,695			634,680
Less: Asset resolution expense (e)	(21,241		)	(12,487		)	(32,408		)	(91,349		)	(128,313		)
Adjusted non-interest expense	$	215,721		$	221,004		$	173,429		$	737,346		$	506,367
Efficiency ratio (c/(a+b))	65.9		%	67.3		%	105.8		%	62.9		%	100.6		%
Efficiency ratio (credit-adjusted) ((c-e)/((a+b)+d)))	56.0		%	46.9		%	65.8		%	46.8		%	64.8		%

	December 31, 2012			September 30, 2012			December 31, 2011
Non-performing assets / Tier 1 capital + allowance for loan losses
Non-performing assets	$	520,557		$	518,416		$	603,082
Tier 1 capital (1)	$	1,456,841		$	1,379,701		$	1,215,220
Allowance for loan losses	305,000			305,000			318,000
Tier 1 capital + allowance for loan losses	$	1,761,841		$	1,684,701		$	1,533,220
Non-performing assets / Tier 1 capital + allowance for loan losses	29.5		%	30.8		%	39.3		%

(1)    Represents Tier 1 capital for Bank.

19

EX-99.2

Earnings Presentation Fourth Quarter 2012 January 24, 2013

Cautionary Statement This presentation contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, as amended. Forward-looking statements, by their nature, involve estimates, projections, goals, forecasts, assumptions, risks and uncertainties that could cause actual results or outcomes to differ materially from those expressed in a forward-looking statement. Examples of forward-looking statements include statements regarding our expectations, beliefs, plans, goals, objectives and future financial or other performance. Words such as "expects," "anticipates," "intends," "plans," "believes," "seeks," "estimates" and variations of such words and similar expressions are intended to identify such forward-looking statements. Any forward-looking statement speaks only as of the date on which it is made. Except to fulfill our obligations under the U.S. securities laws, we undertake no obligation to update any such statement to reflect events or circumstances after the date on which it is made. There are a number of important factors that could cause future results to differ materially from historical performance and these forward-looking statements. Factors that might cause such a difference include: (1) 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 stockholders; (2) Competitive factors for loans could negatively impact gain on loan sale margins; (3) 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; (4) Changes in the regulation of financial services companies and government-sponsored housing enterprises, and in particular, declines in the liquidity of the residential mortgage loan secondary market, could adversely affect our business; (5) Changes in regulatory capital requirements or an inability to achieve or maintain 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 our business model; (6) General business and economic conditions, including unemployment rates, movements in interest rates, the slope of the yield curve, any increase in mortgage fraud and other related criminal activity and the further decline of asset values in certain geographic markets, may significantly affect our business activities, loan losses, reserves, earnings and business prospects; (7) Factors concerning the implementation of proposed refinements and transformation of our business model could result in s lower implementation times than we anticipate and negate any competitive advantage that we may enjoy; (8) Actions of mortgage loan purchasers, guarantors and insurers regarding repurchases and indemnity demands and uncertainty related to foreclosure procedures could adversely affect our business activities and earnings; (9) The Dodd-Frank Wall Street Reform and Consumer Protection Act has resulted in the elimination of the Office of Thrift Supervision (the “OTS”), tightening of capital standards, and the creation of a new Consumer Financial Protection Bureau ("CFPB") and has resulted, or will result, in new laws, regulations and regulatory supervisors that are expected to increase our costs of operations. In addition, the change to the Board of Governors of the Federal Reserve System (the “Federal Reserve”) as our primary federal regulator and to the Office of the Comptroller of the Currency ("OCC") as Flagstar Bank, FSB’s primary federal regulator may result in interpretations affecting our operations different than those of the Office of Thrift Supervision ("OTS"); (10) Both the volume and the nature of consumer actions and other forms of litigation against financial institutions have increased and to the extent that such actions are brought against us or threatened, the cost of defending such suits as well as potential exposure could increase our costs of operations; (11) Our compliance with the terms and conditions of the agreement with the U.S. Department of Justice, the impact of performance and enforcement of commitments under, and provisions contained in the agreement, and our accuracy and ability to estimate the financial impact of that agreement, including the fair value of the future payments required, could accelerate our litigation settlement expenses relating thereto; (12) Our compliance with the terms and conditions of the Supervisory Agreement with the Federal Reserve and the Consent Order with the OCC; (13) The sale of a substantial portion of our commercial loan portfolio is subject to the satisfaction of settlement conditions and certain post-closing indemnification obligations. Because of business, economic or market conditions or for any other reasons within or outside of our discretion, the sale may not have the projected impact or be consummated in a timely manner; and (14) The downgrade by Standards & Poor's of the long-term credit rating of the U.S. could materially affect global and domestic financial markets and economic conditions, which may affect our business activities, financial condition, and liquidity. All of the above factors are difficult to predict, contain uncertainties that may materially affect actual results, and may be beyond our control. New factors emerge from time to time, and it is not possible for our management to predict all such factors or to assess the effect of each such factor on our business. Please also refer to Item 1A to Part I of our Annual Report on Form 10-K, which is incorporated by reference herein, for further information on these and other factors affecting us. Although we believe that the assumptions underlying the forward-looking statements contained herein are reasonable, any of the assumptions could be inaccurate, and therefore any of these statements included herein may prove to be inaccurate. In light of the significant uncertainties inherent in the forward-looking statements included herein, the inclusion of such information should not be regarded as a representation by us or any other person that the results or conditions described in such statements or our objectives and plans will be achieved. 2 4th Quarter 2012 Earnings Presentation

Highlights 3 • Strong financial performance: • Third consecutive quarter of profitability, with net income applicable to common stockholders of $66.8 million, or $1.12 per diluted share. • Return on average assets of 1.78% and return on average equity of 20.70%. • Gain on loan sale income of $239.0 million. • Stable net interest income despite a smaller balance sheet. • Total provisions related to the representation and warranty reserve decreased by 75.2 percent from the prior quarter to $32.5 million. • Strengthened and de-risked the balance sheet: • Total repurchase pipeline decreased by $201.4 million from the prior quarter to $224.2 million, as the Company continued to work through the existing population of repurchase requests. • Continued to add reserves for pending and threatened litigation. • Tier 1 capital ratio (to adjusted total assets) increased by over 100 basis points to 10.41%. • Entered into a definitive agreement to sell a substantial portion of Northeast-based commercial loan portfolio, which is expected to be capital accretive. • Non-performing loans were flat from prior quarter, but declined significantly from December 31, 2011: • Consumer non-performing loans increased by 13.4 percent from the prior quarter, driven primarily by an increase in performing nonaccrual TDRs, but declined by 19.1 percent from December 31, 2011. • Commercial non-performing loans declined by 29.5 percent from the prior quarter and 14.5 percent from December 31, 2011. 4th Quarter 2012 Earnings Presentation (1) See Non-GAAP reconciliation.

Condensed Income Statement 4 (1) The preferred stock dividend/accretion for the three months ended December 31, 2012 and September 30, 2012 and the year ended December 31, 2012, respectively, represents only the accretion. On January 27, 2012, the Company elected to defer payment of dividends and interest on the preferred stock. (2) The three months and year ended December 31, 2011 have been restated for a one-for-ten reverse stock split announced September 27, 2012 and began trading on October 11, 2012. Totals may not foot due to rounding 4th Quarter 2012 Earnings Presentation ($ in millions, except per share data) For the Year Ended Q4 2012 Q3 2012 Q42011 Dec. 31, 2012 Dec. 31, 2011 Net interest income $73.9 $73.1 $75.9 $297.2 $245.4 Provision for loan losses 50.4 52.6 63.5 276.0 176.9 Net interest income after provision for loan losses 23.6 20.5 12.3 21.2 68.4 Non-interest income 285.8 273.7 118.6 1,021.2 385.5 Non-Interest expense 237.0 233.5 205.8 828.7 634.7 Income (loss) before federal income taxes 72.4 60.7 (74.9) 213.7 (180.7) Provision (Benefit) for federal income taxes 4.2 (20.4) 0.3 (15.6) 1.1 Net income (loss) 68.2 81.1 (75.2) 229.4 (181.8) Preferred stock dividend/accretion (1) (1.4) (1.4) (3.0) (5.7) (17.2) Net income (loss) applicable to common stockholders $66.8 $79.7 ($78.2) $223.7 ($198.9) Diluted Earnings (loss) per Share (2) $1.12 $1.36 ($1.41) $3.74 ($3.62)

Summary of Financial Results 5 (1) Net servicing revenue includes net loan administration income and net gain (loss) on trading securities. (2) See Non-GAAP reconciliation. 4th Quarter 2012 Earnings Presentation ($ in millions, except per share data) For the Year Ended Q4 2012 Q3 2012 Q4 2011 Dec. 31, 2012 Dec. 31, 2011 Net Interest Income $73.9 $73.1 $75.9 $297.2 $245.4 Provision $50.4 $52.6 $63.5 $276.0 $176.9 Gain on Loan Sale $238.9 $334.4 $106.9 $990.9 $300.8 Net Servicing Revenue (1) $25.0 $11.3 $29.0 $98.0 $115.7 Net Income (Loss) Applicable to Common Shareholders $66.8 $79.7 ($78.2) $223.7 ($198.9) Diluted Earnings / (Loss) per Share $1.12 $1.36 ($1.41) $3.74 ($3.62) Total Assets $14,082.0 $14,899.2 $13,637.5 $14,082.0 $13,637.5 Total Stockholders' Equity $1,320.4 $1,250.6 $1,079.7 $1,320.4 $1,079.7 Book Value per Common Share $18.97 $17.76 $14.80 $18.97 $14.80 NPLs / Gross Loans HFI 7.16% 6.09% 6.94% 7.16% 6.94% NPAs / Total Assets (Bank) 3.70% 3.48% 4.43% 3.70% 4.43% ALLL / NPLs 76.28% 76.45% 65.11% 76.28% 65.11% ALLL / Gross Loans HFI 5.46% 4.65% 4.52% 5.46% 4.52% NPAs / Tier 1 Capital + Allowance for Loan Losses (2) 29.55% 30.77% 39.33% 29.55% 39.33% NPAs/ Loans HFI and Reposssed Assets 9.12% 7.77% 8.43% 9.12% 8.43% Tier 1 Capital to Adjusted Total Assets Ratio 10.41% 9.31% 8.95% 10.41% 8.95% Total Risk Based Capital Ratio 17.88% 17.58% 16.64% 17.88% 16.64% Total Equity / Total Assets 9.38% 8.39% 7.92% 9.38% 7.92%

Select Balance Sheet Items 6 ($ in millions) As of Dec 31, 2012 As of Sep 30, 2012 As of Dec 31, 2011 Total assets $14,082.0 $14,899.2 $13,637.5 Cash and interest earning deposits $952.8 $1,003.4 $731.1 Residential first mortgage loans 3,009.2 3,086.1 3,749.8 Second mortgage loans 114.9 122.3 138.9 Commercial real estate loans 689.4 1,005.5 1,243.0 Warehouse loans 1,347.7 1,307.3 1,173.9 Consumer lending (including HELOC and other) 229.1 245.3 289.6 Other commercial loans 196.3 785.9 443.4 Investment loan portfolio $5,586.6 $6,552.4 $7,038.6 Mortgage Loans held for sale $3,012.1 $3,251.9 $1,800.9 Commercial Loans held for sale (1) $779.1 $0.0 $0.0 Loans repurchased with government guarantees 1,841.3 1,931.2 1,899.3 Securities classified as trading 170.1 170.1 313.4 Securities classified as available for sale 184.4 198.9 481.4 Mortgage servicing rights 710.8 686.8 510.5 Totals may not foot due to rounding 4th Quarter 2012 Earnings Presentation (1) The loans involved in the Northeast loan sale were transferred from held for investment to held for sale.

Mortgage Banking Revenue Supporting Bank 7 -- Gain on loan sale income continues to offset or exceed total credit-related costs… $106.9 $204.9 $212.7 $334.4 $239.0 $173.2 $213.6 $127.6 $189.7 $97.6 $- $50 $100 $150 $200 $250 $300 $350 Q4 2011 Q1 2012 Q2 2012 Q3 2012 Q4 2012 Net Gain on loan sales Total credit-related-costs Q4 2011 Q1 2012 Q2 2012 Q3 2012 Q4 2012 Mortgage Locks (billions) $11.2 $14.9 $17.5 $18.1 $16.2 Mortgage Originations (billions) $10.2 $11.2 $12.5 $14.5 $15.4 4th Quarter 2012 Earnings Presentation (millions)

8 Bank Net Interest Income and Margin 4th Quarter 2012 Earnings Presentation $77.5 $76.5 $77.2 $74.8 $75.6 2.43% 2.41% 2.37% 2.21% 2.26% 0.00% 0.50% 1.00% 1.50% 2.00% 2.50% 3.00% 3.50% 4.00% $0 $10 $20 $30 $40 $50 $60 $70 Q4 2011 Q1 2012 Q2 2012 Q3 2012 Q4 2012 Net Interest Income before Provision Net Interest Margin (Bank) (millions) -- Net interest income, and margin, improved slightly from the previous quarter as reductions in interest expense driven by a lower cost of deposits and an improved mix of deposits outpaced a decline in interest income…

Primary Credit Related Costs -- Credit-related costs declined from the prior quarter, driven by lower provisions related to the representation and warranty reserve. 4th Quarter 2012 Earnings Presentation $63.5 $114.7 $58.4 $52.6 $50.4 $32.4 $36.8 $20.9 $12.5 $21.2 $69.3 $60.5 $46.0 $124.5 $25.2 $0 $50 $100 $150 $200 $250 Q4 2011 Q1 2012 Q2 2012 Q3 2012 Q4 2012 Provision for loan losses Asset resolution Representation and warranty reserve – change in estimate $165.2 $212.0 $125.3 $189.6 $96.8 (millions) 9

10 Regulatory Capital Ratios -- Regulatory capital ratios increased significantly from the prior quarter… 4th Quarter 2012 Earnings Presentation 9.24% 9.12% 9.61% 9.87% 10.07% 9.31% 8.95% 8.64% 9.07% 9.31% 10.41% 17.20% 16.87% 18.55% 20.51% 19.73% 17.64% 16.64% 16.06% 17.03% 17.58% 19.16% 5.00% 10.00% 15.00% 20.00% Jun-10 Sep-10 Dec-10 Mar-11 Jun-11 Sep-11 Dec-11 Mar-12 Jun-12 Sep-12 Dec-12 Tier 1 Capital Ratio (to Adjusted Total Assets) Total Risk-Based Capital Ratio (to Risk-weighted Assets)

• Divestiture of $785 million in Northeast-based commercial loans. • Sale intended to strengthen the balance sheet, decrease Company’s risk profile and renew focus on core businesses. Asset Divestiture Summary 4th Quarter 2012 Earnings Presentation Summary Select Financial Results 12/31/2012 ($ in millions, except per share data) Q4 2012 Total Assets $14,082.0 Total Stockholders' Equity $1,320.4 Book Value per Common Share $18.97 Tier 1 Capital to Adjusted Total Assets Ratio 10.41% Total Risk Based Capital Ratio 17.88% Total Equity / Total Assets 9.38% Estimated Pro Forma Financial Results Post Completion of Sale* ($ in millions, except per share data) 2013 Total Assets $13,302.2 Total Stockholders' Equity $1,320.4 Book Value per Common Share $18.97 Tier 1 Capital Ratio 11.02% Total Risk Based Capital Ratio 19.77% Total Equity / Total Assets 9.93% * Pro forma financials are reflective of the Northeast based loan sales, and based on financial information as of December 31, 2012. Change $(779.8) $0.0 $0.00 0.61% 1.89% 0.55% 11

2,776 2,785 2,910 1,224 1,659 996 1,202 1,502 1,664 1,595 0 500 1000 1500 2000 2500 3000 3500 4000 4500 5000 Q4 2011 Q1 2012 Q2 2012 Q3 2012 Q4 2012 Audit File Pulls Fannie Mae Freddie Mac 12 Representation and Warranty Reserve 4th Quarter 2012 Earnings Presentation ($ in millions) 4Q11 1Q12 2Q12 3Q12 4Q12 Beginning balance $85.0 $120.0 $142.0 $161.0 $202.0 Additions $72.8 $65.6 $51.7 $130.9 $32.5 Net charge-offs ($37.8) ($43.6) ($32.7) ($89.9) ($41.5) Ending Balance $120.0 $142.0 $161.0 $202.0 $193.0 (1) Totals may not foot due to rounding (1) Representation and warranty reserve would have increased by $2 million from the prior quarter, after adjusting for an $11.0 million reclassification of reserves associated with loans insured by the MBIA Insurance Corporation. $343.3 $357.4 $469.8 $425.6 $224.2 26.8% 29.3% 21.1% 9.0% 15.0% 0.00% 10.00% 20.00% 30.00% 40.00% 50.00% 60.00% 70.00% 80.00% $0 $100 $200 $300 $400 $500 Q4 2011 Q1 2012 Q2 2012 Q3 2012 Q4 2012 Repurchase Pipeline % demands 180+ days old (millions) 3,772 3,987 4,412 2,888 3,254 818 917 1,572 1,100 826 151 217 208 216 199 0 200 400 600 800 1000 1200 1400 1600 1800 2000 Q4 2011 Q1 2012 Q2 2012 Q3 2012 Q4 2012 New Demands Fannie Mae Freddie Mac 1,025 969 1,134 1,780 1,316

13 Allowance for Loan Losses -- Loan loss reserves remained unchanged from the prior quarter… 4th Quarter 2012 Earnings Presentation $318 $281 $287 $305 $305 65.1% 69.1% 66.5% 76.5% 76.3% 0% 20% 40% 60% 80% 100% 120% 140% $0 $50 $100 $150 $200 $250 $300 $350 $400 Allowance for Loan Losses ALLL / Non-performing Loans (millions)

4th Quarter 2012 Earnings Presentation 14 Summary Asset Quality (1) Consumer loans include: residential first mortgage, second mortgage, construction, warehouse lending, HELOC, and other consumer loans. Commercial loans include: commercial real estate, commercial and industrial, and commercial lease financing loans (2) Includes non-performing loans available-for-sale. Totals may not foot due to rounding $ in millions Q4 2012 Q3 2012 Q4 2011 Consumer (1) $66.7 $53.9 $83.7 Commercial (1) $7.0 $9.6 $7.5 Total 30 - 59 Days Past Due $73.7 $63.5 $91.1 Consumer (1) $18.6 $26.7 $41.6 Commercial (1) $7.0 $0.4 $12.4 Total 60 - 89 Days Past Due $25.6 $27.1 $54.0 Consumer (1) $313.4 $276.3 $387.4 Commercial (1) $86.4 $122.6 $101.0 Total Greater than 90 days Past Due $399.8 $398.9 $488.4 Non-performing Assets (2) $522.4 $520.5 $607.7 To Total Assets (Bank only) 3.70% 3.48% 4.43% Provision for Loan Losses $50.4 $52.6 $63.5 Charge-offs, Net of Recoveries $50.4 $34.6 $27.6 Allowance for Loan Losses $305.0 $305.0 $318.0 To Loans Held for Investment 5.46% 4.65% 4.52% To Non-performing Loans 76.3% 76.5% 65.1% Real Estate Owned $120.7 $119.5 $114.7

15 HFI Delinquent Loan Trends Note: Consumer loans include: residential first mortgage, second mortgage, construction, warehouse lending, HELOC, and other consumer loans. Commercial loans include: commercial real estate, commercial and industrial, and commercial lease financing loans. -- Non-performing loans (i.e., 90+ days past due) remained essentially unchanged from the prior quarter… 4th Quarter 2012 Earnings Presentation $0.0 $100.0 $200.0 $300.0 $400.0 $500.0 $600.0 30-60 days past due 60-90 days past due 90+ days past due ($ in millions) $0.0 $10.0 $20.0 $30.0 $40.0 $50.0 $60.0 $70.0 $80.0 $90.0 30 - 60 Days Past Due Consumer Commercial ($ in millions) $0.0 $5.0 $10.0 $15.0 $20.0 $25.0 $30.0 $35.0 $40.0 $45.0 60 - 90 ays Past Due Consumer Commercial ($ in millions) $0.0 $50.0 $100.0 $150.0 $200.0 $250.0 $300.0 $350.0 $400.0 $450.0 90+ Days Past Due Consu er Commercial ($ in millions)

16 Troubled Debt Restructurings (TDRs) -- Performing nonaccrual TDRs increased from the prior quarter, as a result of the implementation of the OCC guidance on bankruptcies… 4th Quarter 2012 Earnings Presentation $135.2 $65.9 $58.2 $55.4 $60.5 $61.3 $93.3 $74.8 $54.1 $84.7 $517.2 $537.2 $576.0 $614.3 $589.8 $0 $100 $200 $300 $400 $500 $600 $700 $800 Q4 2011 Q1 2012 Q2 2012 Q3 2012 Q42012 Non-performing TDRs Performing nonaccrual * Performing accrual $713.7 $696.4 $709.0 $723.8 $735.0 (millions) * Q4 2012 includes $25.0 million of performing nonaccruals TDRs as a result of the implementation of the Office of the Comptroller of the Currency guidance on bankruptcies.

17 Net Charge-offs Note: Consumer loans include: residential first mortgage, second mortgage, construction, warehouse lending, HELOC, and other consumer loans. Commercial loans include: commercial real estate, commercial and industrial , and commercial lease financing loans. -- Net charge-offs increased from the prior quarter, as we continue to work through non-performing loans associated with our HFI residential first mortgage loan portfolio … 4th Quarter 2012 Earnings Presentation $25.9 $107.1 $23.5 $23.5 $39.3 $1.7 $44.6 $28.9 $11.1 $11.1 $- $50 $100 $150 $200 Q4 2011 Q1 2012 Q2 2012 Q3 2012 Q4 2012 Consumer Commercial $151.7 $52.4 $34.6 $50.4 (millions) $27.6

18 Net Gain on Loan Sales and Margin -- Net gain on loan sales declined from the prior quarter, but remains strong compared to historical levels… 4th Quarter 2012 Earnings Presentation $106.9 $204.9 $212.7 $334.4 $239.0 1.02% 1.89% 1.66% 2.42% 1.53% 0.00% 0.50% 1.00% 1.50% 2.00% 2.50% 3.00% 3.50% 4.00% 4.50% 5.00% $0 $50 $100 $150 $200 $250 $300 $350 Q4 2011 Q1 2012 Q2 2012 Q3 2012 Q4 2012 Net Gain on Loan Sales Gain on Loan Sale Margin (millions) Q4 2011 Q1 2012 Q2 2012 Q3 2012 Q4 2012 Mortgage Loan Sales (billions) $10.5 $10.8 $12.8 $13.9 $15.6

19 Historical Monthly Lock Volume -- Mortgage rate lock volume (see thick black line) declined in December… 4th Quarter 2012 Earnings Presentation $0 $1,000 $2,000 $3,000 $4,000 $5,000 $6,000 $7,000 2007 2008 2009 2010 2011 2012 (millions)

20 Mortgage Originations -- Mortgage originations increased slightly from the prior quarter, reflecting strong consumer demand for refinance activity… 4th Quarter 2012 Earnings Presentation $2,148.3 $2,188.5 $3,324.5 $3,267.8 $2,915.7 $8,038.8 $8,980.9 $9,222.5 $11,245.8 $12,441.1 $0 $2,000 $4,000 $6,000 $8,000 $10,000 $12,000 $14,000 $16,000 $18,000 Q4 2011 Q1 2012 Q2 2012 Q3 2012 Q4 2012 Purchase Originations Refinance Originations $11,169.4 $12,547.0 $14,513.6 $15,356.8 (millions) $10,187.1

21 Net Servicing Revenue Note: Net servicing revenue includes net loan administration income and net gain (loss) on trading securities. -- Net servicing revenue, which is income arising from mortgage servicing rights plus hedges, continues to be positive… 4th Quarter 2012 Earnings Presentation $29.0 $32.9 $28.7 $11.3 $25.0 $0 $5 $10 $15 $20 $25 $30 $35 Q4 2011 Q1 2012 Q2 2012 Q3 2012 Q4 2012 Net Servicing Revenue (millions)

22 Cost of Funds -- Average cost of funds improved by 13 basis points from the prior quarter, driven by a decrease in the average rate paid on retail certificates of deposits… 4th Quarter 2012 Earnings Presentation $20.9 $19.0 $18.3 $17.8 $15.0 $27.6 $27.4 $27.4 $27.1 $24.8 $1.7 $1.8 $1.7 $1.8 $1.7 1.81% 1.76% 1.72% 1.73% 1.60% 0.00% 0.50% 1.00% 1.50% 2.00% 2.50% 3.00% 3.50% 4.00% $0 $10 $20 $30 $40 $50 $60 Q4 2011 Q1 2012 Q2 2012 Q3 2012 Q4 2012 Deposit Interest Expense FHLB Interest Expense Other Interest Expense Average Funding Cost (millions)

4th Quarter 2012 Earnings Presentation 23 Deposit Mix Note: Represents the ending balance and rate for period noted. Retail core deposits include demand, savings and money market accounts. Totals may not foot due to rounding -- Total deposits decreased from the prior quarter primarily attributable to a $1.2 billion reduction in principal and interest custodian accounts serviced for the GSEs… (millions) Balance Rate Balance Rate Balance Rate Retail Deposits: Demand deposits 682$ 0.16% 650$ 0.16% 567$ 0.17% Savings deposits 2,108 0.72% 1,710 0.62% 1,462 0.87% Money market deposits 402 0.41% 435 0.45% 492 0.59% Certif icates of deposit 3,175 0.93% 3,272 1.14% 2,972 1.39% Total retail deposits 6,367 0.74% 6,067 0.84% 5,493 1.05% Core retail deposits / retail deposits 50.13% 46.08% 45.89% Government Banking Deposits: Demand deposits 99 0.38% 103 0.36% 103 0.44% Savings deposits 264 0.53% 353 0.51% 206 0.60% Certif icates of deposit 456 0.57% 450 0.60% 402 0.66% Total government banking deposits 819 0.53% 906 711 0.61% Company controlled deposits 1,008 0.00% 2,201 0.00% 1,101 0.00% Wholesale deposits 99 4.41% 315 3.43% 385 3.45% Total deposits $ 8,294 0.68% $ 9,489 0.70% $ 7,690 0.98% Number of banking branches As of Dec 31, 2012 As of Sep 30, 2012 As of Dec 31, 2011 111 111 113

Note: Retail core deposits include checking accounts, savings accounts, and money market accounts. 24 Retail Core Deposits -- Core deposits increased significantly from the previous quarter… 4th Quarter 2012 Earnings Presentation $2,520.7 $2,873.0 $2,950.0 $2,795.0 $3,192.0 45.9% 47.9% 48.6% 46.1% 50.1% 0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% 70.0% $0 $500 $1,000 $1,500 $2,000 $2,500 $3,000 Q4 2011 Q1 2012 Q2 2012 Q3 2012 Q4 2012 Retail Core Retail Core / Retail Deposits (millions)

4th Quarter 2012 Earnings Presentation 25 Appendix

4th Quarter 2012 Earnings Presentation 26 Commercial RE HFI Portfolio Note: “Legacy CRE” consists of loans originated prior to 2011, including those refinanced during 2009 and 2010, while “New CRE” consists of loans originated during 2011 and 2012. $ in thousands New Commercial RE Legacy Commercial RE Property Type Balance 30 - 59 Days Past Due 60 - 89 Days Past Due 90+ Days Past Due (1) Total Reserves Balance 30 - 59 Days Past Due 60 - 89 Days Past Due 90+ Days Past Due (1) Total Reserves Construction one-to-four family $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Land 149 - - - 3 4,802 - - 1,745 276 Services - - - - - - - - - - Commercial & Industrial Loans 767 - - - 14 - - - - - One-to-four family conventional 1,645 - - - 31 756 102 141 62 74 One-to-four family closed end mortgage - - - - - - - - - - Mult-family conventional 10,829 - - - 201 41,484 - 6,411 3,022 3,387 Commercial non-owner occupied 127,877 6,603 - - 2,379 412,323 - 438 77,114 31,393 Secured by non-farm, non-residential 42,096 - - - 783 32,535 274 - 4,424 2,476 Other 15,729 - - - 293 - - - - - Negative Escrow (3) - - - - 1,613 - - - - Net deferred fees and other (1,941) - - - - (1,237) - - - - Total: $197,148 $6,603 $0 $0 $3,704 $492,276 $376 $6,990 $86,367 $37,606 Totals may not foot due to rounding

4th Quarter 2012 Earnings Presentation 27 Commercial RE HFI Portfolio – by State Note: Excludes commercial letters of credit $ in thousands State Construction One- to-Four Family Land Services Commercial and Industrial Loans One-to-Four Family Conventional One-to-Four Family Closed End Mortgage Multi-Family Conventional Commercial Non-Owner Occupied Secured by Non-farm, Non- residential Other Total MI $0 $215 $0 $0 $2,402 $0 $51,213 $319,783 $53,797 $0 $427,409 IN - 4,737 - - - - - 34,862 6,064 - 45,663 GA - - - - - - - 37,881 2,903 - 40,783 VA - - - - - - - 33,867 - - 33,867 CT - - - - - - - 24,583 - - 24,583 FL - - - - - - - 10,365 - 12,154 22,519 MA - - - 767 - - - 9,818 4,385 - 14,969 KY - - - - - - - 10,838 - - 10,838 RI - - - - - - - 5,549 - 3,575 9,124 IL - - - - - - - 7,756 1,301 - 9,057 NC - - - - - - - 4,560 3,828 - 8,388 TX - - - - - - - 8,179 - - 8,179 OH - - - - - - - 6,151 1,338 - 7,489 TN - - - - - - - 7,335 - - 7,335 OK - - - - - - - 6,155 - - 6,155 Other - - - - - - 1,099 12,519 1,016 (1,567) 13,067 Total $0 $4,952 $0 $767 $2,402 $0 $52,312 $540,200 $74,631 $14,162 $689,424 Totals may not foot due to rounding

4th Quarter 2012 Earnings Presentation 28 Commercial RE HFI Portfolio – by Vintage Note: Excludes commercial letters of credit $ in thousands Vintage Construction One-to-Four Family Land Services Commercial and Industrial Loans One-to-Four Family Conventional One-to-Four Family Closed End Mortgage Multi-Family Conventional Commercial Non-Owner Occupied Secured by Non- farm, Non- residential Other Total Older $0 $0 $0 $0 $215 $0 $8,958 $18,556 $1,560 $0 $29,289 2003 - - - - - - 3,322 13,830 1,874 - 19,026 2004 - - - - - - 4,158 56,259 2,398 - 62,814 2005 - - - - - - 15,484 33,993 1,188 - 50,665 2006 - - - - - - 3,436 71,611 4,908 - 79,955 2007 - 1,679 - - 71 - 2,384 91,991 17,846 - 113,972 2008 - - - - 122 - 3,742 97,210 2,760 - 103,833 2009 - 66 - - 348 - - 7,105 - - 7,519 2010 - - - - - - - 8,039 - - 8,038 2011 - 3,207 - 767 13 - - 53,801 9,269 - 67,056 2012 - - - - 1,632 - 10,829 87,806 32,828 14,162 147,255 Total $0 $4,952 $0 $767 $2,402 $0 $52,312 $540,200 $74,631 $14,162 $689,424 Totals may not foot due to rounding

4th Quarter 2012 Earnings Presentation 29 First Mortgage Portfolio – by State Note: Reflects unpaid principal balance of underlying loans before accounting adjustments for discounts and other items. Also excludes loans eligible for repurchase from Ginnie Mae pools. $ in thousands State AFS HFI ARM Fixed Balloon Total % of Total ARM Fixed Balloon Total % of Total CA $ 14,746 $ 1,077,451 $ - $ 1,092,197 38.9% $ 544,658 $ 335,113 $ 30,183 $ 909,954 30.7% FL 2,396 187,475 - 189,871 6.8% 268,879 135,879 7,789 412,548 13.9% MI 1,839 140,324 - 142,164 5.1% 236,684 47,343 9,324 293,351 9.9% WA 2,322 103,366 - 105,688 3.8% 91,715 38,259 7,005 136,979 4.6% AZ 642 71,878 - 72,520 2.6% 81,904 39,306 2,219 123,429 4.2% CO 1,558 69,919 - 71,477 2.5% 58,002 17,803 5,262 81,067 2.7% MD 3,251 78,008 - 81,259 2.9% 49,013 26,913 5,978 81,904 2.8% NY 1,660 82,511 - 84,171 3.0% 37,743 33,203 2,042 72,988 2.5% VA 415 75,005 - 75,420 2.7% 49,414 18,608 2,899 70,920 2.4% TX 2,209 130,770 - 132,979 4.7% 29,441 34,049 2,442 65,932 2.2% NJ 1,220 50,427 - 51,647 1.8% 32,540 23,572 3,940 60,051 2.0% NV - 17,721 - 17,721 0.6% 40,428 16,091 1,078 57,597 1.9% IL 1,489 57,613 - 59,102 2.1% 33,633 22,986 2,276 58,894 2.0% GA 168 48,203 - 48,371 1.7% 34,087 21,322 3,336 58,745 2.0% OH - 26,329 - 26,329 0.9% 35,570 9,296 882 45,748 1.5% Other 11,787 542,443 357 554,587 19.8% 263,630 154,094 16,792 434,515 14.7% Total : $ 45,702 $ 2,759,446 $ 357 $ 2,805,504 100% $ 1,887,338 $ 973,836 $ 103,448 $ 2,964,622 100% Totals may not foot due to rounding

4th Quarter 2012 Earnings Presentation 30 First Mortgage Portfolio – by Vintage Note: Reflects unpaid principal balance of underlying loans before accounting adjustments for discounts and other items. Also excludes loans eligible for repurchase from Ginnie Mae pools. $ in thousands Year AFS HFI ARM Fixed Balloon Total % of Total ARM Fixed Balloon Total % of Total Older $ 634 $ 515 $ - $ 1,149 0.0% $ 50,126 $ 24,538 $ 789 $ 75,453 2.5% 2003 509 255 - 763 0.0% 164,522 18,800 6,299 189,620 6.4% 2004 6,055 - - 6,055 0.2% 514,171 35,152 9,316 558,639 18.8% 2005 3,204 791 - 3,995 0.1% 538,388 66,313 3,360 608,061 20.5% 2006 838 2,395 89 3,321 0.1% 142,263 127,166 15,725 285,153 9.6% 2007 5,709 15,890 268 21,868 0.8% 390,428 483,756 65,394 939,577 31.7% 2008 526 10,936 - 11,462 0.4% 26,497 93,314 2,565 122,376 4.1% 2009 - 10,070 - 10,070 0.4% 11,251 51,180 - 62,432 2.1% 2010 4,587 3,272 - 7,859 0.3% 8,038 29,176 - 37,214 1.3% 2011 1,193 633 - 1,826 0.1% 20,935 26,523 - 47,458 1.6% 2012 22,448 2,714,688 - 2,737,137 97.6% 20,720 17,919 - 38,639 1.3% Total : $ 45,702 $ 2,759,446 $ 357 $ 2,805,504 100% $ 1,887,338 $ 973,836 $ 103,448 $ 2,964,622 100% Totals may not foot due to rounding

4th Quarter 2012 Earnings Presentation 31 First Mortgage Portfolio – by Original FICO Note: Reflects unpaid principal balance of underlying loans before accounting adjustments for discounts and other items. Also excludes loans eligible for repurchase from Ginnie Mae pools. Totals may not foot due to rounding $ in thousands FICO AFS HFI ARM Fixed Balloon Total % of Total ARM Fixed Balloon Total % of Total < 580 $ - $ 8,039 $ - $ 8,039 0.3% $ 36,080 $ 39,964 $ 773 $ 76,818 2.6% 580 - 619 - 12,822 - 12,822 0.5% 28,803 42,548 1,438 72,789 2.5% 620 - 659 830 131,122 - 131,952 4.7% 119,438 97,898 4,906 222,243 7.5% 660 - 699 6,881 303,235 - 310,116 11.1% 503,885 254,895 37,175 795,955 26.8% > 699 37,991 2,304,227 357 2,342,575 83.5% 1,199,131 538,531 59,156 1,796,818 60.6% Total : $ 45,702 $ 2,759,446 $ 357 $ 2,805,504 100% $ 1,887,338 $ 973,836 $ 103,448 $ 2,964,622 100%

4th Quarter 2012 Earnings Presentation 32 First Mortgage Portfolio – by Original LTV Note: Reflects unpaid principal balance of underlying loans before accounting adjustments for discounts and other items. Also excludes loans eligible for repurchase from Ginnie Mae pools. $ in thousands Original LTV AFS HFI ARM Fixed Balloon Total % of Total ARM Fixed Balloon Total % of Total < 70 $ 26,836 $ 880,985 $ - $ 907,821 32.4% $ 491,769 $ 254,682 $ 22,874 $ 769,325 26.0% 70 - 79.99 14,883 684,762 - 699,645 24.9% 1,150,941 504,215 60,347 1,715,503 57.9% 80 - 89.99 2,276 248,779 89 251,144 9.0% 122,310 79,506 13,686 215,502 7.3% 90 - 99.99 1,707 733,943 268 735,918 26.2% 116,442 123,418 6,273 246,133 8.3% 100 - 109.99 - 121,226 - 121,226 4.3% 5,637 9,760 149 15,546 0.5% 110 - 124.99 - 39,774 - 39,774 1.4% 240 1,866 - 2,106 0.1% > 124.99 - 49,978 - 49,978 1.8% - 388 119 507 0.0% Total: $ 45,702 $ 2,759,446 $ 357 $ 2,805,504 100% $ 1,887,338 $ 973,836 $ 103,448 $ 2,964,622 100% Totals may not foot due to rounding

4th Quarter 2012 Earnings Presentation 33 First Mortgage Portfolio – by HPI Adjusted LTV Note: Reflects unpaid principal balance of underlying loans before accounting adjustments for discounts and other items. Also excludes loans eligible for repurchase from Ginnie Mae pools. The housing price index (HPI adjusted) LTV is updated from the original LTV based on Metropolitan Statistical Area- level Office of Federal Housing Enterprise Oversight (OFHEO) data. $ in thousands HPI Adjusted LTV AFS HFI ARM Fixed Balloon Total % of Total ARM Fixed Balloon Total % of Total < 70 $ 27,660 $ 890,610 $ - $ 918,271 32.7% $ 405,209 $ 112,272 $ 8,316 $ 525,797 17.7% 70 - 79.99 11,749 670,411 89 682,249 24.3% 322,830 105,649 10,055 438,534 14.8% 80 - 89.99 2,321 246,933 - 249,254 8.9% 302,919 140,746 16,251 459,917 15.5% 90 - 99.99 3,971 727,599 - 731,570 26.1% 241,665 157,291 20,233 419,189 14.1% 100 - 109.99 - 115,611 268 115,879 4.1% 200,895 152,341 15,373 368,609 12.4% 110 - 124.99 - 49,859 - 49,859 1.8% 237,275 168,906 20,042 426,223 14.4% > 124.99 - 58,423 - 58,423 2.1% 176,544 136,631 13,178 326,353 11.0% Total : $ 45,702 $ 2,759,446 $ 357 $ 2,805,504 100% $ 1,887,338 $ 973,836 $ 103,448 $ 2,964,622 100% Totals may not foot due to rounding

4th Quarter 2012 Earnings Presentation 34 Real Estate Owned Portfolio $ in thousands Commercial % Receivership % Construction % Manufactured Homes % Single Family Homes % Multi Family Dwelling % Total % Current Month $10,899 24.4% $0 0.0% $215 8.4% $0 0.0% $7,479 13.2% $0 0.0% $18,594 15.4% 30 days 2,367 5.3% - 0.0% 161 6.3% 36 15.2% 3,302 5.8% 125 83.9% 5,991 5.0% 60 days 3,527 7.9% - 0.0% 443 17.4% 51 21.7% 10,366 18.3% - 0.0% 14,387 11.9% 90 days 1,466 3.3% - 0.0% 591 23.2% 53 22.8% 3,027 5.3% - 0.0% 5,138 4.3% 91 - 180 days 16,688 37.3% 4,960 63.0% 484 19.0% 21 9.1% 10,846 19.1% 24 16.1% 33,024 27.4% 181 - 365 days 4,969 11.1% - 0.0% 347 13.6% 8 3.2% 12,119 21.4% - 0.0% 17,443 14.4% 1 - 2 years 2,961 6.6% 2,915 37.0% 309 12.1% 32 13.8% 6,897 12.2% - 0.0% 13,114 10.9% 2 - 3 years 1,734 3.9% - 0.0% - 0.0% 33 14.2% 1,653 2.9% - 0.0% 3,421 2.8% 3 - 4 years 111 0.2% - 0.0% - 0.0% - 0.0% 672 1.2% - 0.0% 784 0.6% 4 - 5 years - 0.0% - 0.0% - 0.0% - 0.0% 292 0.5% - 0.0% 292 0.2% Loans to Facilitate - 0.0% - 0.0% - 0.0% - 0.0% - 0.0% - 0.0% 8,546 7.1% Total $44,723 100.0% $7,875 100.0% $2,550 100.0% $234 100.0% $56,655 100.0% $149 100.0% $120,732 100.0% Totals may not foot due to rounding

4th Quarter 2012 Earnings Presentation 35 Asset Quality by Loan Type - HFI Note: Non-performing loans include 90+ days delinquent and matured, and performing non-accruals. $ in thousands Loan Type Balance Non-performing Loans % of Balance % of Overall NPLs Q4 '12 Charge Offs, Net of Recoveries Collectively Evaluated Reserves (1) Individually Evaluated Reserves (2) Total Reserves Residential first mortgage $3,009,252 $385,624 12.81% 77.27% $28,271 $68,685 $150,545 $219,230 Second mortgage 114,884 5,621 4.89% 1.13% 5,227 13,173 7,028 20,201 Warehouse 1,347,727 - - - - 899 - 899 HELOC 179,447 6,420 3.58% 1.29% 4,933 15,274 3,074 18,348 Consumer 49,611 1,018 2.05% 0.20% 882 2,040 - 2,040 Commercial RE 689,424 100,336 14.55% 20.10% 6,843 38,772 2,538 41,310 Commercial NRE 196,288 41 0.02% 0.01% 4,194 2,962 10 2,971 Total: $5,586,633 $499,060 8.93% 100.00% $50,350 $ 139,305 $165,695 $305,000 (1) Represents loans collectively evaluated for impairment in accordance with ASC 450-20, Loss Contingencies (formerly FAS 5), and pursuant to amendments by ASU 2010-20 regarding allowance for unimpaired loans (2) Represents loans individually evaluated for impairment in accordance with ASC 310-10, Receivables (formerly FAS 114), and pursuant to amendments by ASU 2010-20 regarding allowance for impaired loans. Totals may not foot due to rounding

4th Quarter 2012 Earnings Presentation 36 Non-performing Loans HFI – by State Note: Non-performing loans include 90+ days delinquent and matured, and performing non-accruals. Excludes participations and first mortgage repurchases. $ in thousands State Mortgage Percent of Mortgage Second Mortgage HELOC Commercial Real Estate Commercial Consumer Total Percent of Total CA $71,737 23.4% $936 $817 $8,999 $0 $0 $82,489 20.6% FL 61,648 20.1% 203 61 1,715 - - 63,627 15.9% MI 15,735 5.1% 468 1,215 26,196 41 178 43,833 11.0% VA 6,763 2.2% 12 - 33,867 - - 40,642 10.2% NY 13,324 4.3% 86 - - - - 13,410 3.4% WA 12,155 4.0% 309 352 - - - 12,816 3.2% GA 4,434 1.4% - - 8,273 - 2 12,709 3.2% NJ 12,194 4.0% - - - - - 12,194 3.0% IL 9,439 3.1% 147 3 1,935 - - 11,524 2.9% MD 9,849 3.2% 187 41 - - - 10,077 2.5% TX 8,687 2.8% 85 - - - - 8,772 2.2% AZ 7,944 2.6% 214 93 - - - 8,251 2.1% NV 5,601 1.8% 23 101 - - - 5,725 1.4% CO 4,395 1.4% - - - - - 4,395 1.1% OH 3,287 1.1% - 42 1,244 - - 4,573 1.1% Other 59,255 19.3% 1,053 340 4,138 - 2 64,788 16.2% Total $306,447 100.0% $3,723 $3,065 $86,367 $41 $183 $399,826 100.0% Totals may not foot due to rounding

4th Quarter 2012 Earnings Presentation 37 Non-performing Loans HFI – by Vintage Note: Non-performing loans include 90+ days delinquent and matured, and performing non-accruals. Excludes participations and first mortgage repurchases. $ in thousands Vintage Mortgage Percent of Mortgage Second Mortgage HELOC Commercial Real Estate Commercial Consumer Total Percent of Total Older $17,032 5.6% $242 $1,140 $3,346 $0 $9 $21,769 5.4% 2004 25,548 8.3% 156 185 2,415 - 7 28,310 7.1% 2005 35,706 11.7% 207 69 5,170 - 2 41,154 10.3% 2006 31,206 10.2% 215 - 22,972 - 1 54,394 13.6% 2007 124,681 40.7% 2,665 1,632 33,027 - 23 162,029 40.5% 2008 47,700 15.6% 219 - 3,814 3 18 51,754 12.9% 2009 15,139 4.9% 19 - 569 - - 15,728 3.9% 2010 4,272 1.4% - - 2,538 - 45 6,855 1.7% 2011 5,202 1.7% - - 12,515 38 4 17,760 4.4% 2012 - 0.0% - - - - 73 73 0.0% Total $306,486 100.0% $3,724 $3,025 $86,367 $41 $183 $399,825 100% Totals may not foot due to rounding

4th Quarter 2012 Earnings Presentation 38 Non – GAAP Reconciliation $ in millions Dec 31, 2012 Sep 30, 2012 Dec 31, 2011 Non-performing assets $520.6 $518.4 $603.1 Tier 1 Capital 1,456.8 1,379.7 1,215.2 Allowance for Loan Losses 305.0 305.0 318.0 Tier 1 Capital + Allowance for Loan Losses $1,761.8 $1,684.7 $1,533.2 Non-performing assets/ Tier 1 Capital + Allowance for Loan Losses 29.55% 30.77% 39.33% Totals may not foot due to rounding

FBC LISTED NYSE 39 4th Quarter 2012 Earnings Presentation