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):July 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:

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

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

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

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

Item 2.02 Results of Operations and Financial Condition

On July 23, 2013, Flagstar Bancorp, Inc. (the "Company") issued a press release regarding its results of operations and financial condition for the three months ended June 30, 2013. 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 three and six months ended June 30, 2013 as part of its Quarterly Report on Form 10-Q.

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 July 24, 2013, the Company held a quarterly conference call to review second quarter 2013 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 July 23, 2013
99.2	Flagstar Bancorp, Inc. Conference Call Presentation Slides - Second Quarter 2013 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 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, the Company's strategy for outsourcing its non-core default servicing business 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 Form 10-K and Forms 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 Supervisory Agreement with the Board of Governors of the Federal Reserve System and the Consent Order with the Office of the Comptroller of the Currency. 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: July 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 July 23, 2013
99.2	Flagstar Bancorp, Inc. Conference Call Presentation Slides - Second Quarter 2013 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 Second Quarter 2013 Net Income of $65.8 million or $1.10 per Diluted Share

Strengthened regulatory capital ratios and significantly reduced balance sheet risk through bulk loan sales

Non-performing loans declined by 30 percent, troubled debt restructurings declined by 26 percent and allowance coverage increased to 94 percent

Successfully resolved key legacy litigation

New CEO Sandro DiNello committed to transparency and shareholder value

TROY, Mich. (July 23, 2013) - Flagstar Bancorp, Inc. (NYSE:FBC) ("the Company"), the holding company for Flagstar Bank, FSB (the "Bank"), today reported second quarter 2013 net income applicable to common stockholders of $65.8 million, or $1.10 per share (diluted), as compared to $22.2 million, or $0.33 per share (diluted), in the first quarter 2013 and $86.0 million, or $1.47 per share (diluted), in the second quarter 2012. Book value per common share increased to $17.66 at June 30, 2013, as compared to $16.46 at March 31, 2013.

"Our second quarter results represent the successful continuation of Flagstar's efforts to reduce risk, address legacy issues and build strong capital levels," said Sandro DiNello, the Company's President and Chief Executive Officer. "We believe that these efforts, along with new initiatives to reduce expenses and maximize efficiency across the organization, collectively position Flagstar for long-term growth and shareholder value creation.

"During the quarter, we were opportunistic in the resolution of our remaining legacy litigation, entering into settlement agreements with both MBIA and Assured, resulting in a net gain of $44 million. In addition, we took advantage of an improving market for loan demand, selling a substantial amount of non-performing loans and troubled debt restructurings virtually at book, which significantly improved our asset quality ratios. This month, we also made the decision to outsource our non-core default servicing business, which we believe will generate significant cost savings and better position the company to focus on growing the core performing servicing business."

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Mr. DiNello continued, "Gain on loan sale income grew from the prior quarter, reflecting an increase in base margin and a flat level of mortgage locks. Despite this improvement, it is important to convey that we believe the recent uptick in mortgage rates will significantly decrease overall refinance volumes in the coming quarters. We believe we can offset some of the expected decrease in refinance production by leveraging our product offerings, overall market position and reputation for speed of closing, and certainty of execution, to continue to grow our share of the purchase market. We also plan to focus on efficiency optimization and disciplined expense management throughout the organization, while developing strategies to improve cross-sells and to utilize excess cash to grow interest-earning assets. As we drive towards Flagstar's next phase of growth and development, we remain committed to improved disclosure and transparency to ensure that our strategy and improved performance is better communicated among the investment community."

SecondQuarter 2013 Highlights (as Compared to First Quarter 2013)

• Net income applicable to common stockholders increased to $65.8 million, as compared to $22.2 million:

◦ Income of $49.1 million related to the previously announced settlement with Assured Guaranty Municipal Corp., formerly known as Financial Security Assurance Inc. ("Assured").

◦ Loss of $(4.9) million related to the settlement with MBIA Insurance Corporation ("MBIA").

◦ Decrease in net interest income to $47.1 million, as compared to $55.7 million.

◦ Increase in gain on loan sales to $144.8 million, as compared to $137.5 million.

▪ Fallout-adjusted mortgage rate lock commitments of $9.8 billion, relatively flat.

▪ Gain on loan sale margin (based on fallout-adjusted locks) of 1.47 percent, as compared to 1.40 percent.

◦ Increase in net loan administration income to $36.2 million, as compared to $20.4 million.

• Strengthened regulatory capital ratios, maintained liquidity and sold mortgage servicing rights:

◦ Tier 1 leverage ratio increased by 86 basis points to 11.00 percent

◦ Cash and cash equivalents increased by $0.5 billion to $2.7 billion.

◦ Completed bulk sales of mortgage servicing rights related to $12.7 billion in underlying mortgage loans.

• Significantly improved credit quality:

◦ Sold $341.1 million in unpaid principal balance of residential first mortgage non-performing loans and total troubled debt restructurings ("TDRs"), with a carrying value of $277.9 million, for 99.5 percent of carrying value, resulting in a net loss (before broker fees) of $1.4 million.

◦ Total non-performing loans decreased by 30.2 percent to $257.9 million and total TDRs decreased by 26.4 percent to $547.3 million, of which $451.1 million are performing TDRs.

◦ Ratio of allowance for loan losses to non-performing loans increased to 94.2 percent.

◦ Total pipeline of active loan repurchase demands (the "repurchase pipeline") decreased by 38.5 percent to $115.0 million, while the representation and warranty reserve remained at $185.0 million.

Litigation Settlements

On May 2, 2013 the Bank entered into an agreement (the "MBIA Settlement Agreement") to settle the previously announced lawsuit which was filed by MBIA on January 11, 2013. The lawsuit involved approximately $1.1 billion of non-agency securitization transactions in 2006 and 2007 involving fixed and adjustable rate second mortgage loans that MBIA insured. Under the terms of the Settlement Agreement, MBIA terminated its pending lawsuit and in exchange, among other consideration and transaction provisions, the Company paid MBIA $110.0 million. As a result of the MBIA Settlement Agreement, the Company recognized a loss of $(4.9) million. This includes a $7.2 million loss (recorded in other non-interest income) arising from the fair value of the assets in the mortgage securitizations and an $8.8 million other-than-temporary impairment, partially offset by $5.0 million in income recognition resulting from the reversal of related reserves for pending and threatened litigation and a $6.1 million tax benefit resulting from the deferred tax asset associated with the mortgage securitization.

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On June 21, 2013 the Bank entered into an agreement (the "Assured Settlement Agreement") to settle the previously announced lawsuit filed by Assured. The litigation pertained to $902.2 million of non-agency securitization transactions in 2005 and 2006 involving home equity line of credit ("HELOC") loans which were insured by Assured. Under the terms of the Assured Settlement Agreement, Assured terminated its pending lawsuit and will not pursue any related claims at any time in the future. In exchange, the Company paid Assured $105.0 million and will assume responsibility for future claims associated with the two HELOC securitization trusts, including the right to receive from Assured all future reimbursements for claims paid to which Assured would have been entitled. As a result of the Assured Settlement Agreement, the Company recognized $49.1 million of income, which includes $44.1 million in income arising from the excess of the fair value of the net assets and liabilities in the two HELOC securitizations and $5.0 million in income recognition from the reversal of related reserves for pending and threatened litigation.

Net Interest Income

Second quarter 2013 net interest income decreased to $47.1 million, as compared to $55.7 million for the first quarter 2013 and $75.5 million for the second quarter 2012. The decrease from the prior quarter was driven primarily by lower average balances of interest-earning assets and a decrease in the yield paid on those assets, plus a slight increase in the cost of funds. Net interest margin for the Bank decreased to 1.72 percent, as compared to 1.89 percent for the first quarter 2013 and 2.37 percent for the second quarter 2012. The decrease from the prior quarter reflects the decline in net interest income, which more than offset the decline in the average balances of higher-yielding assets, primarily mortgage loans held-for-sale and warehouse loans.

The average cost of funds for the second quarter 2013 was 1.58 percent, an increase from 1.54 percent for the first quarter 2013 and a decrease from 1.72 percent for the second quarter 2012. The increase from the prior quarter was driven by the use of lower costing short-term FHLB advances during the first quarter which were paid-off during the second quarter 2013 as a result of the availability of increased liquidity. Average cost of total deposits decreased to 0.75 percent for the second quarter 2013, as compared to 0.78 percent for the first quarter 2013 and 1.07 percent for the second quarter 2012. The decrease from the prior quarter was consistent with the Company's improvement in funding mix, as higher-cost retail certificates of deposit were replaced with lower-cost demand and savings deposits.

Non-interest Income

Second quarter 2013 non-interest income increased to $220.0 million, as compared to $184.9 million for the first quarter 2013 and decreased from $240.3 million for the second quarter 2012. The increase from the prior quarter was driven by increased gain on loan sales, net servicing revenue and other non-interest income.

Second quarter 2013 net gain on loan sales increased to $144.8 million, as compared to $137.5 million for the first quarter 2013 and decreased from $212.7 million for the second quarter 2012. The increase from the prior quarter was primarily due to an increase in the gain on sale margin, combined with a flat level of mortgage rate lock commitments. Gain on loan sale margin (based on the amount of rate lock commitments net of estimated cancellations, or "fallout-adjusted locks") increased to 1.47 percent for the second quarter 2013, as compared to 1.40 percent for the first quarter 2013 and decreased from 1.59 percent for the second quarter 2012. Fallout-adjusted locks were $9.8 billion in the second quarter 2013, flat from the level in the prior quarter.

Mortgage originations decreased to $10.9 billion for the second quarter 2013, as compared to $12.4 billion for the prior quarter and $12.5 billion for the second quarter 2012. Purchase originations comprised 28.9 percent of overall mortgage originations in the second quarter, as compared to 18.8 percent in the prior quarter, reflecting the shift to a more purchase-driven market as a result of the recent and sustained increase in mortgage interest rate levels.

Loan fees and charges decreased to $29.9 million for the second quarter 2013, as compared to $33.4 million for the first quarter 2013 and $34.8 million for the second quarter 2012. Loan fees and charges are driven by mortgage loan originations, which decreased to $10.9 billion for the second quarter 2013, as compared to $12.4 billion for the first quarter 2013 to $12.5 billion for the second quarter 2012.

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Net servicing revenue, which is the combination of 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 $36.2 million for the second quarter 2013, as compared to $20.4 million for the first quarter 2013 and $28.7 million for the second quarter 2012. The increase from the prior quarter was primarily attributable to a gain associated with bulk sales of mortgage servicing rights related to $12.7 billion in underlying mortgage loans, partially offset by a decrease in hedge performance from the prior quarter.

The Company's second quarter 2013 results included $44.1 million related to the Assured Settlement Agreement and a loss of $7.2 million related to the MBIA Settlement Agreement, which in total, increased other non-interest income by $36.8 million from the prior quarter.

The Company also recorded a second quarter 2013 net impairment loss on its investment securities available-for-sale of $8.8 million (recognized in earnings), as compared to no impairment in the prior quarter, as a result of the MBIA Settlement Agreement.

Non-interest Expense

Non-interest expense was $174.4 million for the second quarter 2013, as compared to $196.6 million for the first quarter 2013 and $169.5 million for the second quarter 2012. Excluding asset resolution expense (discussed in Credit-Related Costs and Asset Quality, below), non-interest expense would have totaled $158.5 million for the second quarter 2013, as compared to $180.1 million for the first quarter 2013 and $148.6 million for the second quarter 2012. The decrease from the prior quarter primarily reflects decreases in legal and professional expense and compensation and benefits.

Second quarter 2013 legal and professional expense decreased to $16.4 million, as compared to $28.8 million for the first quarter 2013. The decrease from the prior quarter was primarily driven by a $10.0 million release of reserves for pending and threatened litigation associated the Assured Settlement Agreement and the MBIA Settlement Agreement. As a result of the settlement agreements, the Company's reserves for pending and threatened litigation decreased by $221.2 million from the prior quarter to a balance of $26.8 million at June 30, 2013, which primarily includes the U.S. Department of Justice ("DOJ") litigation.

Compensation and benefits decreased to $70.9 million for the second quarter 2013, as compared to $77.2 million for the first quarter 2013 but increased from $65.4 million for the second quarter 2012. The decrease from the prior quarter was primarily related to the timing of payroll taxes. Commission expense decreased to $15.4 million for the second quarter 2013, as compared to $17.5 million for the first quarter 2013 and $17.8 million for the second quarter 2012. The decrease from the prior quarter was consistent with the 12.4 percent decrease in mortgage loan originations during the quarter.

Credit-Related Costs and Asset Quality

For the second quarter 2013, total credit-related costs (see non-GAAP reconciliation) increased to $85.2 million, as compared to $54.4 million for the first quarter 2013 and $127.6 million for the second quarter 2012. The increase from the prior quarter was primarily due to increases in the provision for loan losses, representation and warranty reserve - change in estimate and other than temporary impairment on available-for-sale investment securities (discussed in Non-interest Income, above).

During the quarter, the Company sold $341.1 million in unpaid principal balance of residential first mortgage non-performing and TDRs, with a carrying value of $277.9 million. The Company recorded a total loss on the sales of $3.0 million, which included $1.6 million in fees paid to the broker.

At June 30, 2013, the allowance for loan losses decreased to $243.0 million, as compared to $290.0 million at March 31, 2013, primarily driven by the charge-off of $38.3 million in reserves associated with the non-performing loan and TDR sales, partially offset by an increase in the allowance for loan losses related to emerging risks associated with

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loans expected to convert from interest-only to full-pay. At June 30, 2013, the ratio of the allowance for loan losses to non-performing loans held-for-investment increased to 94.2 percent, as compared to 78.5 percent at March 31, 2013.

Provision for loan losses increased to $31.6 million for the second quarter 2013, as compared to $20.4 million for the prior quarter, driven primarily by the increased allowance for loan losses related to emerging risks associated with loans expected to convert from interest-only to full-pay. Second quarter 2013 net charge-offs increased to $78.6 million, as compared to $35.4 million for the prior quarter, driven primarily by the $38.3 million in charge-offs associated with the non-performing loan and TDR sales.

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 June 30, 2013, the representation and warranty reserve was $185.0 million, which remained flat as compared to March 31, 2013. During the second quarter 2013, the model was enhanced to reflect a change in estimate of loss period as a result of increased requests by the GSEs for loan files for loans originated in earlier vintages. As a result, provisions related to the representation and warranty reserve - change in estimate increased to $28.9 million for the second quarter 2013, as compared to $17.4 million for the first quarter 2013.

At June 30, 2013, the total repurchase pipeline decreased to $115.0 million, as compared to $187.0 million at March 31, 2013, as the Company continued to aggressively work through its existing population of repurchase requests. New audit file review requests increased by 33.5 percent in the second quarter 2013 from the first quarter 2013, while new repurchase demands decreased by 35.4 percent from the prior quarter.

Total non-performing loans held-for-investment were $257.9 million at June 30, 2013, a decrease as compared to $369.3 million at March 31, 2013 and $431.6 million at June 30, 2012. The ratio of non-performing loans held-for-investment to loans held-for-investment also decreased to 5.74 percent at June 30, 2013, from 7.79 percent at March 31, 2013, as a result of the decrease in non-performing loans. These decreases from the prior quarter were primarily due to a decrease in consumer non-performing loans as a result of the sale of residential first mortgage non-performing loans completed during the second quarter 2013.

Commercial non-performing loans decreased to $63.8 million at June 30, 2013, as compared to $66.1 million at March 31, 2013 and $138.1 million at June 30, 2012, primarily driven by normal dispositions of commercial real estate loans.

Real estate-owned and other non-performing assets also decreased to $86.4 million at June 30, 2013, as compared to $114.4 million at March 31, 2013. The decrease was driven primarily by the sale of residential first mortgage non-performing loans, a portion of which were considered in-substance foreclosures for accounting purposes and therefore classified as real-estate owned.

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) was $15.9 million for the second quarter 2013, relatively flat as compared to $16.4 million for the first quarter 2013, but decreased from $20.9 million for the second quarter 2012.

Balance Sheet and Funding

Total assets at June 30, 2013 were $12.7 billion, as compared to $13.1 billion at March 31, 2013, driven primarily by a decrease in loans held-for-sale reflecting the decrease in mortgage loan originations during the second quarter 2013. This decrease was partially offset by an increase in cash on hand and interest-earning deposits from the proceeds of the non-performing loan and TDR sales completed during the second quarter 2013.

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Long-term debt increased to $367.4 million at June 30, 2013, as compared to $247.4 million at March 30, 2013, driven by the on balance-sheet recognition of debt, which is recorded at fair value, associated with the Company's re-consolidation of the two HELOC securitization trusts as a result of the Assured Settlement Agreement.

Total deposits were $7.5 billion at June 30, 2013, a decrease of $0.3 billion as compared to $7.8 billion at March 31, 2013. The decrease from the prior quarter was primarily attributable to a decrease in retail certificates of deposits, which were replaced, in part, by retail demand and savings deposits. The Company's average balances of retail demand and savings deposits increased by 2.1 percent and 7.0 percent, respectively, from the prior quarter.

At June 30, 2013, the Company had approximately $2.7 billion of cash on hand and interest-earning deposits, as compared to $2.2 billion at March 31, 2013. The Bank 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 June 30, 2013, the Bank had medium-term outstanding borrowings from the FHLB of $2.9 billion and an additional $0.5 billion of collateralized borrowing capacity available at the FHLB.

Capital

The Bank's regulatory capital ratios remain above current regulatory quantitative guidelines for "well-capitalized" institutions. At June 30, 2013, the Bank had a Tier 1 leverage ratio of 11.00 percent, as compared to 10.14 percent at March 31, 2013. At June 30, 2013, the Company had an equity-to-assets ratio of 9.84 percent.

Earnings Conference Call

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

It is preferred that questions are emailed in advance to investors@flagstar.com, or they may be asked during the conference call.

To join the call, please dial (888) 726-2423 toll free or (913) 312-1480, and use passcode: 7813813. 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: 7813813.

The conference call will also be available as a live audio cast 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. is the holding company for Flagstar Bank, FSB, a full-service financial institution offering a range of products and services to consumers, businesses, and homeowners. With $12.7 billion in total assets at June 30, 2013, Flagstar is the largest publicly held savings bank headquartered in the Midwest. Flagstar operates 111 banking centers, all of which are located in Michigan and 40 home lending centers located in 17 states, which primarily originate one-to-four family residential first mortgage loans. Originating loans nationwide, Flagstar 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

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in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures that may be presented by other companies.

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, the Company's strategy for outsourcing its non-core default servicing business 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 Form 10-K and Forms 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 Supervisory Agreement with the Board of Governors of the Federal Reserve System and the Consent Order with the Office of the Comptroller of the Currency. 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

(Dollars in thousands)

	June 30, 2013			March 31, 2013			December 31, 2012			June 30, 2012
Assets	(Unaudited)			(Unaudited)						(Unaudited)
Cash and cash equivalents
Cash and cash items	$	51,252		$	50,840		$	38,070		$	71,184
Interest-earning deposits	2,653,191			2,179,846			914,723			1,199,205
Total cash and cash equivalents	2,704,443			2,230,686			952,793			1,270,389
Trading securities	50,039			170,139			170,086			169,834
Investment securities available-for-sale	92,930			169,827			184,445			424,765
Loans held-for-sale	2,331,458			2,677,239			3,939,720			2,459,482
Loans repurchased with government guarantees	1,509,365			1,604,906			1,841,342			1,999,110
Loans, net
Loans held-for-investment	4,491,153			4,743,266			5,438,101			6,550,257
Less: allowance for loan losses	(243,000		)	(290,000		)	(305,000		)	(287,000		)
Total loans held-for-investment, net	4,248,153			4,453,266			5,133,101			6,263,257
Mortgage servicing rights	729,019			727,207			710,791			638,865
Repossessed assets, net	86,382			114,356			120,732			107,235
Federal Home Loan Bank stock	301,737			301,737			301,737			301,737
Premises and equipment, net	227,771			223,276			219,059			209,126
Other assets	453,720			421,511			508,206			524,646
Total assets	$	12,735,017		$	13,094,150		$	14,082,012		$	14,368,446
Liabilities and Stockholders' Equity
Deposits
Non-interest bearing	$	1,181,226		$	1,112,313		$	1,308,317		$	2,079,456
Interest bearing	6,288,841			6,734,978			6,985,978			6,843,391
Total deposits	7,470,067			7,847,291			8,294,295			8,922,847
Federal Home Loan Bank advances	2,900,000			2,900,000			3,180,000			3,400,000
Long-term debt	367,415			247,435			247,435			248,585
Representation and warranty reserve	185,000			185,000			193,000			161,000
Other liabilities	558,800			730,396			1,007,920			457,665
Total liabilities	11,481,282			11,910,122			12,922,650			13,190,097
Stockholders' Equity
Preferred stock	263,277			261,828			260,390			257,556
Common stock	561			561			559			558
Additional paid in capital	1,477,484			1,476,624			1,476,569			1,473,924
Accumulated other comprehensive (loss) income	988			(656		)	(1,658		)	8,274
Accumulated deficit	(488,575		)	(554,329		)	(576,498		)	(561,963		)
Total stockholders' equity	1,253,735			1,184,028			1,159,362			1,178,349
Total liabilities and stockholders' equity	$	12,735,017		$	13,094,150		$	14,082,012		$	14,368,446

8

Flagstar Bancorp, Inc.  Consolidated Statements of Operations  (Dollars in thousands, except per share data)
	Three Months Ended									Six Months Ended
	June 30, 2013			March 31, 2013			June 30, 2012			June 30, 2013			June 30, 2012
	(Unaudited)			(Unaudited)			(Unaudited)			(Unaudited)			(Unaudited)
Interest Income
Loans	$	81,731		$	91,950		$	115,611		$	173,680		$	229,519
Investment securities available-for-sale or trading	1,838			2,094			6,850			3,932			15,421
Interest-earning deposits and other	1,489			946			462			2,435			874
Total interest income	85,058			94,990			122,923			180,047			245,814
Interest Expense
Deposits	12,148			13,508			18,321			25,656			37,307
Federal Home Loan Bank advances	24,171			24,161			27,386			48,332			54,779
Other	1,643			1,652			1,738			3,295			3,517
Total interest expense	37,962			39,321			47,445			77,283			95,603
Net interest income	47,096			55,669			75,478			102,764			150,211
Provision for loan losses	31,563			20,415			58,428			51,978			173,101
Net interest income (expense) after provision for loan losses	15,533			35,254			17,050			50,786			(22,890		)
Non-Interest Income
Loan fees and charges	29,916			33,360			34,783			63,276			64,757
Deposit fees and charges	5,193			5,146			5,039			10,339			9,961
Loan administration	36,157			20,356			25,012			56,513			63,898
Gain (loss) on trading securities	21			51			3,711			72			(2,260		)
Net gain on loan sales	144,791			137,540			212,666			282,331			417,518
Net transactions costs on sales of mortgage servicing rights	(4,264		)	(4,219		)	(983		)	(8,483		)	(3,299		)
Net gain on investment securities available-for-sale	—			—			20			—			330
Net gain (loss) on sale of assets	1,064			958			(26		)	2,022			—
Total other-than-temporary impairment (loss) gain	(8,789		)	—			(1,707		)	(8,789		)	2,810
Gain (loss) recognized in other comprehensive income before taxes	—			—			690			—			(5,002		)
Net impairment losses recognized in earnings	(8,789		)	—			(1,017		)	(8,789		)	(2,192		)
Representation and warranty reserve - change in estimate	(28,940		)	(17,395		)	(46,028		)	(46,336		)	(106,566		)
Other non-interest income	44,810			9,146			7,157			53,957			19,563
Total non-interest income	219,959			184,943			240,334			404,902			461,710
Non-Interest Expense
Compensation and benefits	70,935			77,208			65,402			148,144			131,390
Commissions	15,402			17,462			17,838			32,863			33,305
Occupancy and equipment	22,198			19,375			18,706			41,574			35,656
Asset resolution	15,921			16,445			20,851			32,366			57,621
Federal deposit insurance premiums	7,791			11,240			12,104			19,031			24,428
Loan processing expense	15,389			17,111			11,132			32,500			21,818
Legal and professional expense	16,390			28,839			13,084			45,229			29,901
Other non-interest expense	10,371			8,910			10,380			19,279			24,124
Total non-interest expense	174,397			196,590			169,497			370,986			358,243

9

Flagstar Bancorp, Inc.  Consolidated Statements of Operations  (Dollars in thousands, except per share data)
	Three Months Ended									Six Months Ended
	June 30, 2013			March 31, 2013			June 30, 2012			June 30, 2013			June 30, 2012
Income before federal income taxes	61,095			23,607			87,887			84,702			80,577
(Benefit) provision for federal income taxes	(6,108		)	—			500			(6,108		)	500
Net income	67,203			23,607			87,387			90,810			80,077
Preferred stock dividend/accretion	(1,449		)	(1,438		)	(1,417		)	(2,887		)	(2,824		)
Net income applicable to common stockholders	$	65,754		$	22,169		$	85,970		$	87,923		$	77,253
Income per share
Basic	$	1.11		$	0.33		$	1.48		$	1.44		$	1.26
Diluted	$	1.10		$	0.33		$	1.47		$	1.43		$	1.26

10

Flagstar Bancorp, Inc.

Summary of Selected Consolidated Financial and Statistical Data

(Dollars in thousands, except per share data)

(Unaudited)

	Three Months Ended									Six Months Ended
	June 30, 2013			March 31, 2013			June 30, 2012			June 30, 2013			June 30, 2012
Return on average assets	2.03		%	0.65		%	2.37		%	1.32		%	1.08		%
Return on average equity	21.23		%	7.55		%	31.09		%	14.57		%	13.78		%
Efficiency ratio	65.3		%	81.7		%	53.7		%	73.1		%	58.5		%
Efficiency ratio (credit-adjusted) (1)	53.5		%	69.8		%	41.1		%	61.1		%	41.8		%
Equity-to-assets ratio (average for the period)	9.56		%	8.57		%	7.62		%	9.06		%	7.81		%
Mortgage loans originated (2)	$	10,882,129		$	12,423,364		$	12,547,017		$	23,305,492		$	23,716,426
Other loans originated	$	67,763		$	74,739		$	203,584		$	142,503		$	475,029
Mortgage loans sold and securitized	$	11,123,821		$	12,822,879		$	12,777,311		$	23,946,700		$	23,607,109
Interest rate spread - bank only (3)	1.46		%	1.64		%	2.10		%	1.55		%	2.12		%
Net interest margin - bank only (4)	1.72		%	1.89		%	2.37		%	1.81		%	2.39		%
Interest rate spread - consolidated (3)	1.43		%	1.61		%	2.08		%	1.52		%	2.10		%
Net interest margin - consolidated (4)	1.66		%	1.83		%	2.32		%	1.75		%	2.34		%
Average common shares outstanding	56,053,922			55,973,888			55,740,558			56,014,126			55,701,431
Average fully diluted shares outstanding	56,419,163			56,415,057			56,182,130			56,417,122			56,008,232
Average interest-earning assets	$	11,311,945		$	12,075,212		$	12,943,237		$	11,691,470		$	12,791,952
Average interest paying liabilities	$	9,642,543		$	10,338,644		$	11,100,307		$	9,988,671		$	11,047,283
Average stockholder's equity	$	1,238,787		$	1,173,982		$	1,106,224		$	1,206,563		$	1,121,421
Charge-offs to average investment loans (annualized) (5)	6.96		%	2.93		%	3.24		%	4.88		%	6.18		%
Charge-offs, excluding one-time charge-off, to average investment loans (annualized) (5)(6)	3.56		%	2.93		%	3.24		%	3.24		%	6.18		%

	June 30, 2013			March 31, 2013			December 31, 2012			June 30, 2012
Equity-to-assets ratio	9.84		%	9.04		%	8.23		%	8.20		%
Book value per common share	$	17.66		$	16.46		$	16.12		$	16.50
Number of common shares outstanding	56,077,528			56,033,204			55,863,053			55,772,262
Mortgage loans serviced for others	$	68,320,534		$	73,933,296		$	76,821,222		$	76,192,099
Weighted average service fee (basis points)	29.5			29.3			29.2			30.4
Capitalized value of mortgage servicing rights	1.07		%	0.98		%	0.93		%	0.84		%
Ratio of allowance for loan losses to non-performing loans held-for-investment (7)	94.2		%	78.5		%	76.3		%	66.5		%
Ratio of allowance for loan losses to loans held-for-investment (5) (7)	5.75		%	6.11		%	5.61		%	4.38		%
Ratio of non-performing assets to total assets (bank only)	2.71		%	3.70		%	3.70		%	3.75		%
Number of bank branches	111			111			111			111
Number of loan origination centers	40			41			31			30
Number of FTE employees (excluding loan officers and account executives)	3,418			3,456			3,328			3,184
Number of loan officers and account executives	341			322			334			336

(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) Excludes loans carried under the fair value option.

(6) Excludes charge-offs of $38.3 million related to the sale of non-performing loans and TDRs, during both the three and six months ended June 30, 2013, respectively.

(7) Only includes non-performing loans held-for-investment.

11

Regulatory Capital

(Dollars in thousands)

(Unaudited)

	June 30, 2013				March 31, 2013				December 31, 2012				June 30, 2012
	Amount		Ratio		Amount		Ratio		Amount		Ratio		Amount		Ratio
Tier 1 leverage (to adjusted tangible assets) (1)	$	1,390,582	11.00	%	$	1,318,770	10.14	%	$	1,295,841	9.26	%	$	1,295,962	9.07	%
Total adjusted tangible asset base	$	12,646,776			$	13,007,694			$	13,999,636			$	14,282,922
Tier 1 capital (to risk weighted assets) (1)	$	1,390,582	23.73	%	$	1,318,770	21.24	%	$	1,295,841	15.90	%	$	1,295,962	15.76	%
Total capital (to risk weighted assets) (1)	1,465,860		25.01	%	1,398,914		22.53	%	1,400,126		17.18	%	1,400,975		17.03	%
Risk weighted asset base	$	5,861,221			$	6,208,327			$	8,146,771			$	8,224,348

(1) 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.

Loan Originations (Dollars in thousands) (Unaudited)
	Three Months Ended
	June 30, 2013				March 31, 2013				June 30, 2012
Consumer loans
Mortgage (1)	$	10,882,129	99.4	%	$	12,423,364	99.4	%	$	12,547,017	98.4	%
Other consumer (2)	11,659		0.1	%	8,553		0.1	%	6,501		0.1	%
Total consumer loans	10,893,788		99.5	%	12,431,917		99.5	%	12,553,518		98.5	%
Commercial loans (3)	56,104		0.5	%	66,186		0.5	%	197,083		1.5	%
Total loan originations	$	10,949,892	100.0	%	$	12,498,103	100.0	%	$	12,750,601	100.0	%

	Six Months Ended
	June 30, 2013				June 30, 2012
Consumer loans
Mortgage (1)	$	23,305,492	99.4	%	$	23,716,426	98.1	%
Other consumer (2)	20,212		0.1	%	10,980		—	%
Total consumer loans	23,325,704		99.5	%	23,727,406		98.1	%
Commercial loans (3)	122,291		0.5	%	464,049		1.9	%
Total loan originations	$	23,447,995	100.0	%	$	24,191,455	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.

12

Loans Held-for-Investment

(Dollars in thousands)

(Unaudited)

	June 30, 2013				March 31, 2013				December 31, 2012				June 30, 2012
Consumer loans
Residential first mortgage	$	2,627,979	58.5	%	$	2,991,394	63.1	%	$	3,009,251	55.3	%	$	3,102,137	47.4	%
Second mortgage	180,802		4.0	%	112,385		2.4	%	114,885		2.1	%	127,434		1.9	%
Warehouse lending	676,454		15.1	%	750,765		15.8	%	1,347,727		24.8	%	1,261,442		19.3	%
HELOC	321,576		7.2	%	167,815		3.5	%	179,447		3.3	%	198,228		3.0	%
Other	42,293		0.9	%	44,488		0.9	%	49,611		0.9	%	57,605		0.9	%
Total consumer loans	3,849,104		85.7	%	4,066,847		85.7	%	4,700,921		86.4	%	4,746,846		72.5	%
Commercial loans
Commercial real estate	476,500		10.6	%	562,916		11.9	%	640,315		11.8	%	1,075,015		16.4	%
Commercial and industrial	160,259		3.6	%	107,688		2.3	%	90,565		1.7	%	569,288		8.7	%
Commercial lease financing	5,290		0.1	%	5,815		0.1	%	6,300		0.1	%	159,108		2.4	%
Total commercial loans	642,049		14.3	%	676,419		14.3	%	737,180		13.6	%	1,803,411		27.5	%
Total loans held-for-investment	$	4,491,153	100.0	%	$	4,743,266	100.0	%	$	5,438,101	100.0	%	$	6,550,257	100.0	%

13

Allowance for Loan Losses

(Dollars in thousands)

(Unaudited)

	Three Months Ended									Six Months Ended
	June 30, 2013			March 31, 2013			June 30, 2012			June 30, 2013			June 30, 2012
Beginning balance	$	290,000		$	305,000		$	281,000		$	305,000		$	318,000
Provision for loan losses	31,563			20,415			58,428			51,978			173,101
Charge-offs
Consumer loans
Residential first mortgage	(63,099		)	(25,692		)	(22,570		)	(88,791		)	(118,002		)
Second mortgage	(2,033		)	(1,955		)	(4,057		)	(3,988		)	(9,340		)
HELOC	(812		)	(2,061		)	(4,257		)	(2,873		)	(10,676		)
Other	(587		)	(699		)	(728		)	(1,286		)	(1,918		)
Total consumer loans	(66,531		)	(30,407		)	(31,612		)	(96,938		)	(139,936		)
Commercial loans
Commercial real estate	(21,350		)	(13,162		)	(31,277		)	(34,512		)	(76,310		)
Commercial and industrial	—			—			(23		)	—			(1,604		)
Total commercial loans	(21,350		)	(13,162		)	(31,300		)	(34,512		)	(77,914		)
Total charge-offs	(87,881		)	(43,569		)	(62,912		)	(131,450		)	(217,850		)
Recoveries
Consumer loans
Residential first mortgage	6,687			5,353			6,582			12,040			7,132
Second mortgage	87			390			1,039			477			1,288
HELOC	457			105			93			562			350
Other	(80		)	454			395			374			607
Total consumer loans	7,151			6,302			8,109			13,453			9,377
Commercial loans
Commercial real estate	2,159			1,843			2,344			4,002			4,336
Commercial and industrial	8			9			31			17			36
Total commercial loans	2,167			1,852			2,375			4,019			4,372
Total recoveries	9,318			8,154			10,484			17,472			13,749
Charge-offs, net of recoveries	(78,563		)	(35,415		)	(52,428		)	(113,978		)	(204,101		)
Ending balance	$	243,000		$	290,000		$	287,000		$	243,000		$	287,000
Net charge-off ratio (annualized) (1)	6.96		%	2.93		%	3.24		%	4.88		%	6.18		%
Net charge-off ratio, excluding one-time charge-off (annualized) (1)(2)	3.56		%	2.93		%	3.24		%	3.24		%	6.18		%

(1) Excludes loans carried under the fair value option.

(2) Excludes charge-offs of $38.3 million related to the sale of non-performing loans and TDRs, during both the three and six months ended June 30, 2013, respectively.

14

Representation and Warranty Reserve

(Dollars in thousands)

(Unaudited)

		Three Months Ended									Six Months Ended
		June 30, 2013			March 31, 2013			June 30, 2012			June 30, 2013			June 30, 2012
Balance, beginning of period		$	185,000		$	193,000		$	142,000		$	193,000		$	120,000
Provision
	Charged to gain on sale for current loan sales	5,052			5,817			5,643			10,870			10,694
	Charged to representation and warranty reserve - change in estimate	28,941			17,396			46,028			46,336			106,566
	Total	33,993			23,213			51,671			57,206			117,260
Charge-offs, net		(33,993		)	(31,213		)	(32,671		)	(65,206		)	(76,260		)
Balance, end of period		$	185,000		$	185,000		$	161,000		$	185,000		$	161,000

Composition of Allowance for Loan Losses

(Dollars in thousands)

(Unaudited)

June 30, 2013	Collectively Evaluated Reserves		Individually Evaluated Reserves		Total
Consumer loans
Residential first mortgage	$	67,264	$	110,070	$	177,334
Second mortgage	10,870		7,969		18,839
Warehouse lending	721		—		721
HELOC	11,735		3,133		14,868
Other	1,780		—		1,780
Total consumer loans	92,370		121,172		213,542
Commercial loans
Commercial real estate	27,253		69		27,322
Commercial and industrial	2,052		84		2,136
Commercial lease financing	—		—		—
Total commercial loans	29,305		153		29,458
Total allowance for loan losses	$	121,675	$	121,325	$	243,000

March 31, 2013	Collectively Evaluated Reserves		Individually Evaluated Reserves		Total
Consumer loans
Residential first mortgage	$	63,144	$	150,932	$	214,076
Second mortgage	12,839		7,844		20,683
Warehouse lending	532		—		532
HELOC	14,835		3,283		18,118
Other	2,215		—		2,215
Total consumer loans	93,565		162,059		255,624
Commercial loans
Commercial real estate	32,521		199		32,720
Commercial and industrial	1,562		10		1,572
Commercial lease financing	84		—		84
Total commercial loans	34,167		209		34,376
Total allowance for loan losses	$	127,732	$	162,268	$	290,000

15

Non-Performing Loans and Assets

(Dollars in thousands)

(Unaudited)

	June 30, 2013			March 31, 2013			December 31, 2012			June 30, 2012
Non-performing loans	$	161,725		$	223,388		$	254,581		$	298,511
Non-performing TDRs	24,025			56,498			60,516			58,240
Non-performing TDRs at inception but performing for less than six months	72,186			89,417			84,728			74,848
Total non-performing loans held-for-investment	257,936			369,303			399,825			431,599
Real estate and other non-performing assets, net	86,382			114,356			120,732			107,235
Non-performing assets held-for-investment, net	344,318			483,659			520,557			538,834
Non-performing loans held-for-sale	3,351			394			1,835			2,430
Total non-performing assets including loans held-for-sale	$	347,669		$	484,053		$	522,392		$	541,264
Ratio of non-performing assets to total assets (Bank only)	2.71		%	3.70		%	3.72		%	3.77		%
Ratio of non-performing loans held-for-investment to loans held-for-investment	5.74		%	7.79		%	7.35		%	6.59		%
Ratio of non-performing assets to loans held-for-investment and repossessed assets	7.52		%	9.96		%	9.36		%	8.09		%

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
June 30, 2013
Consumer loans	$	60,872	$	13,421	$	194,151	$	268,444	$	3,849,104
Commercial loans	188		22,736		63,785		86,709		642,049
Total loans	$	61,060	$	36,157	$	257,936	$	355,153	$	4,491,153
March 31, 2013
Consumer loans	$	58,368	$	20,481	$	303,168	$	382,017	$	4,066,847
Commercial loans	1,465		6,400		66,135		74,000		676,419
Total loans	$	59,833	$	26,881	$	369,303	$	456,017	$	4,743,266
December 31, 2012
Consumer loans	$	66,687	$	18,578	$	313,418	$	398,683	$	4,700,921
Commercial loans	6,979		6,990		86,408		100,377		737,180
Total loans	$	73,666	$	25,568	$	399,826	$	499,060	$	5,438,101
June 30, 2012
Consumer loans	$	62,123	$	24,762	$	293,474	$	380,359	$	4,746,846
Commercial loans	1,719		2,345		138,125		142,189		1,803,411
Total loans	$	63,842	$	27,107	$	431,599	$	522,548	$	6,550,257

16

Troubled Debt Restructurings

(Dollars in thousands)

(Unaudited)

	TDRs
	Performing		Non-performing		Non-performing TDRs at inception but performing for less than six months		Total
June 30, 2013
Consumer loans	$	451,097	$	24,025	$	71,951	$	547,073
Commercial loans	—		—		235		235
Total TDRs	$	451,097	$	24,025	$	72,186	$	547,308
March 31, 2013
Consumer loans	$	598,041	$	56,498	$	87,971	$	742,510
Commercial loans	—		—		1,446		1,446
Total TDRs	$	598,041	$	56,498	$	89,417	$	743,956
December 31, 2012
Consumer loans	$	588,475	$	60,493	$	82,695	$	731,663
Commercial loans	1,287		23		2,033		3,343
Total TDRs	$	589,762	$	60,516	$	84,728	$	735,006
June 30, 2012
Consumer loans	$	574,359	$	57,914	$	68,398	$	700,671
Commercial loans	1,738		326		6,450		8,514
Total TDRs	$	576,097	$	58,240	$	74,848	$	709,185

17

Gain on Loan Sales and Securitizations

(Dollars in thousands)

(Unaudited)

	Three Months Ended
	June 30, 2013					March 31, 2013					June 30, 2012
Description
Valuation gain (loss)
Value of interest rate locks	$	(75,040	)	(0.68	)%	$	(35,327	)	(0.28	)%	$	64,123		0.50	%
Value of forward sales	166,941			1.51	%	(4,339		)	(0.03	)%	(47,126		)	(0.37	)%
Fair value of loans held-for-sale	(19,336		)	(0.17	)%	87,644			0.68	%	176,741			1.38	%
LOCOM adjustments on loans held-for-investment	—			—	%	(1,797		)	(0.01	)%	—			—	%
Total valuation gains	72,565			0.66	%	46,181			0.36	%	193,738			1.51	%
Sales gains (losses)
Marketing gains, net of adjustments	28,753			0.25	%	25,859			0.21	%	180,691			1.41	%
Pair-off (losses) gains	48,525			0.44	%	71,317			0.55	%	(156,120		)	(1.22	)%
Provision for representation and warranty reserve	(5,052		)	(0.05	)%	(5,817		)	(0.05	)%	(5,643		)	(0.04	)%
Total sales gains	72,226			0.64	%	91,359			0.71	%	18,928			0.15	%
Total gain on loan sales and securitizations	$	144,791				$	137,540				$	212,666
Total mortgage rate lock commitments (gross)	$	12,359,000				$	12,142,000				$	17,534,000
Total loan sales and securitizations	$	11,123,821		1.30	%	$	12,822,879		1.07	%	$	12,777,311		1.66	%
Total mortgage rate lock commitments (fallout adjusted) (1)	$	9,837,573		1.47	%	$	9,848,417		1.40	%	$	13,346,568		1.59	%

	Six Months Ended
	June 30, 2013					June 30, 2012
Description
Valuation gain (loss)
Value of interest rate locks	$	(110,367	)	(0.46	)%	$	61,423		0.26	%
Value of forward sales	162,602			0.68	%	(3,316		)	(0.01	)%
Fair value of loans held-for-sale	68,307			0.29	%	297,805			1.26	%
LOCOM adjustments on loans held-for-investment	(1,797		)	(0.01	)%	(21		)	—	%
Total valuation gains	118,745			0.5	%	355,891			1.51	%
Sales gains (losses)
Marketing gains, net of adjustments	54,612			0.23	%	312,203			1.33	%
Pair-off gains (losses)	119,842			0.5	%	(239,883		)	(1.02	)%
Provision for representation and warranty reserve	(10,869		)	(0.05	)%	(10,693		)	(0.05	)%
Total sales gains	163,585			0.68	%	61,627			0.26	%
Total gain on loan sales and securitizations	$	282,330				$	417,518
Total mortgage rate lock commitments volume	$	24,501,000				$	32,401,000
Total loan sales and securitizations	$	23,946,700		1.18	%	$	23,607,109		1.77	%
Total mortgage rate lock commitments (fallout adjusted) (1)	$	19,685,990		1.43	%	$	24,072,186		1.73	%

(1) Fallout adjusted mortgage rate lock commitments are adjusted by a percentage of mortgage loans in the pipeline that are not expected to close based on previous historical experience and the level of interest rates. The net margin is based on net gain on loan sales to fallout adjusted mortgage rate lock commitments.

18

Average Balances, Yields and Rates

(Dollars in thousands)

(Unaudited)

	Three Months Ended
	June 30, 2013				March 31, 2013				June 30, 2012
	Average Balance		Annualized Yield/Rate		Average Balance		Annualized Yield/Rate		Average Balance		Annualized Yield/Rate
Interest-Earning Assets
Loans held-for-sale	$	2,630,309	3.38	%	$	3,616,195	2.97	%	$	2,977,233	3.91	%
Loans repurchased with government guarantees	1,540,798		3.43	%	1,774,235		3.38	%	2,067,022		3.36	%
Loans held-for-investment
Consumer loans (1) (2)	3,845,503		4.08	%	4,136,420		4.15	%	4,635,259		4.38	%
Commercial loans (1)	669,253		4.18	%	698,269		4.27	%	1,835,897		3.97	%
Total loans held-for-investment	4,514,756		4.10	%	4,834,689		4.16	%	6,471,156		4.27	%
Investment securities available-for-sale or trading	240,296		3.06	%	348,525		2.41	%	642,389		4.27	%
Interest-earning deposits and other	2,385,786		0.25	%	1,501,568		0.26	%	785,437		0.24	%
Total interest-earning assets	11,311,945		3.01	%	12,075,212		3.15	%	12,943,237		3.80	%
Other assets	1,649,000				1,617,359				1,571,239
Total assets	$	12,960,945			$	13,692,571			$	14,514,476
Interest-Bearing Liabilities
Retail deposits
Demand deposits	$	395,137	0.21	%	$	388,466	0.25	%	$	361,916	0.24	%
Savings deposits	2,627,166		0.73	%	2,316,859		0.75	%	1,829,592		0.75	%
Money market deposits	345,694		0.26	%	387,699		0.35	%	482,296		0.49	%
Certificate of deposits	2,353,775		0.91	%	2,931,558		0.90	%	3,113,134		1.27	%
Total retail deposits	5,721,772		0.74	%	6,024,582		0.76	%	5,786,938		0.98	%
Government deposits
Demand deposits	114,707		0.40	%	98,442		0.44	%	95,805		0.49	%
Savings deposits	169,122		0.29	%	308,811		0.47	%	272,119		0.56	%
Certificate of deposits	413,177		0.44	%	471,842		0.60	%	361,315		0.66	%
Total government deposits	697,006		0.40	%	879,095		0.53	%	729,239		0.60	%
Wholesale deposits	73,910		5.07	%	81,976		4.92	%	339,018		3.78	%
Total deposits	6,492,688		0.75	%	6,985,653		0.78	%	6,855,195		1.07	%
Federal Home Loan Bank advances	2,901,102		3.34	%	3,105,556		3.16	%	3,996,527		2.76	%
Other	248,753		2.65	%	247,435		2.71	%	248,585		2.81	%
Total interest-bearing liabilities	9,642,543		1.58	%	10,338,644		1.54	%	11,100,307		1.72	%
Other liabilities (3)	2,079,615				2,179,945				2,307,945
Stockholder's equity	1,238,787				1,173,982				1,106,224
Total liabilities and stockholder's equity	$	12,960,945			$	13,692,571			$	14,514,476

(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) Excludes loans that are consolidated variable interest entities (VIEs) and carried at fair value.

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

19

Average Balances, Yields and Rates

(Dollars in thousands)

(Unaudited)

	Six Months Ended
	June 30, 2013				June 30, 2012
	Average Balance		Annualized Yield/Rate		Average Balance		Annualized Yield/Rate
Interest-Earning Assets
Loans held-for-sale	$	3,120,529	3.14	%	$	2,685,479	3.97	%
Loans repurchased with government guarantees	1,656,872		3.41	%	2,044,680		3.37	%
Loans held-for-investment
Consumer loans (1) (2)	3,990,157		4.12	%	4,813,043		4.36	%
Commercial loans (1)	683,681		4.23	%	1,795,907		4.09	%
Total loans held-for-investment	4,673,838		4.13	%	6,608,950		4.28	%
Investment securities available-for-sale or trading	294,112		2.67	%	714,332		4.32	%
Interest-earning deposits and other	1,946,119		0.25	%	738,511		0.24	%
Total interest-earning assets	11,691,470		3.08	%	12,791,952		3.84	%
Other assets	1,633,267				1,568,874
Total assets	$	13,324,737			$	14,360,826
Interest-Bearing Liabilities
Retail deposits
Demand deposits	$	391,820	0.23	%	$	354,229	0.25	%
Savings deposits	2,472,870		0.74	%	1,719,894		0.79	%
Money market deposits	366,581		0.30	%	484,602		0.51	%
Certificate of deposits	2,641,070		0.90	%	3,099,009		1.31	%
Total retail deposits	5,872,341		0.75	%	5,657,734		1.01	%
Government deposits
Demand deposits	106,619		0.42	%	97,265		0.49	%
Savings deposits	238,581		0.40	%	271,360		0.57	%
Certificate of deposits	442,347		0.52	%	376,985		0.66	%
Total government deposits	787,547		0.47	%	745,610		0.61	%
Wholesale deposits	77,921		4.99	%	348,275		3.76	%
Total deposits	6,737,809		0.77	%	6,751,619		1.11	%
FHLB advances	3,002,764		3.25	%	4,047,079		2.72	%
Other	248,098		2.68	%	248,585		2.84	%
Total interest-bearing liabilities	9,988,671		1.56	%	11,047,283		1.74	%
Other liabilities (3)	2,129,503				2,192,122
Stockholder's equity	1,206,563				1,121,421
Total liabilities and stockholder's equity	$	13,324,737			$	14,360,826

(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) Excludes loans that are consolidated variable interest entities (VIEs) and carried at fair value.

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

20

Non-GAAP Reconciliation

(Dollars in thousands)

(Unaudited)

	Three Months Ended									Six Months Ended
	June 30, 2013			March 31, 2013			June 30, 2012			June 30, 2013			June 30, 2012
Pre-tax, pre-credit-cost revenue
Income before tax provision	$	61,095		$	23,607		$	87,887		$	84,702		$	80,577
Add back
Provision for loan losses	31,563			20,415			58,428			51,978			173,101
Asset resolution	15,921			16,445			20,851			32,366			57,621
Other than temporary impairment on AFS investments	8,789			—			1,017			8,789			2,192
Representation and warranty reserve - change in estimate	28,940			17,395			46,028			46,336			106,566
Write down of residual interest	—			174			1,244			174			1,653
Total credit-related costs	85,213			54,429			127,568			139,643			341,133
Pre-tax, pre-credit-cost net revenue	$	146,308		$	78,036		$	215,455		$	224,345		$	421,710
Efficiency ratio (credit-adjusted)
Net interest income (a)	$	47,096		$	55,669		$	75,478		$	102,764		$	150,211
Non-interest income (b)	219,959			184,943			240,334			404,902			461,710
Add: Representation and warranty reserve - change in estimate (d)	28,940			17,395			46,028			46,336			106,566
Adjusted income	295,995			258,007			361,840			554,002			718,487
Non-interest expense (c)	174,397			196,590			169,497			370,986			358,243
Less: Asset resolution expense (e)	(15,921		)	(16,445		)	(20,851		)	(32,366		)	(57,621		)
Adjusted non-interest expense	$	158,476		$	180,145		$	148,646		$	338,620		$	300,622
Efficiency ratio (c/(a+b))	65.3		%	81.7		%	53.7		%	73.1		%	58.5		%
Efficiency ratio (credit-adjusted) ((c-e)/((a+b)+d)))	53.5		%	69.8		%	41.1		%	61.1		%	41.8		%

	June 30, 2013			March 31, 2013			December 31, 2012			June 30, 2012
Non-performing assets / Tier 1 capital + allowance for loan losses
Non-performing assets	$	344,318		$	483,659		$	520,557		$	538,834
Tier 1 capital (1)	1,390,582			1,318,770			1,295,841			1,295,962
Allowance for loan losses	243,000			290,000			305,000			287,000
Tier 1 capital + allowance for loan losses	$	1,633,582		$	1,608,770		$	1,600,841		$	1,582,962
Non-performing assets / Tier 1 capital + allowance for loan losses	21.1		%	30.1		%	32.5		%	34.0		%

(1) Represents Tier 1 capital for Bank.

21

EX-99.2

Earnings Presentation Second Quarter 2013 July 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-which affect, among other things, (i) the mortgage 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; 2. Competitive factors for mortgage loan originations could negatively affect gain on loan sale margins; 3. Competition from banking and non-banking companies for deposits and loans can affect our earnings, gain on sale margins and market share; 4. Changes in the regulation of financial services companies and government-sponsored housing enterprises and, in particular, declines in the liquidity of the secondary market for residential mortgage loan sales 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 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; 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. Repurchases and indemnity demands by mortgage loan purchasers, guarantors and insurers, uncertainty related to foreclosure procedures, and the outcome of current and future legal or regulatory proceedings could result in unforeseen consequences and adversely affect our business activities and earnings; 8. 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, the cost of defending such suits as well as potential exposure could increase our costs of operations; 9. 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 related litigation settlement expenses; 10. Our, or the Bank's, failure to comply with the terms and conditions of the Supervisory Agreement with the Federal Reserve or the Consent Order with the OCC, respectively, could result in further enforcement actions against us, which could negatively affect our results of operations and financial condition; and 11. The downgrade of the long-term credit rating of the U.S. by one or more ratings agencies 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 for the year ended December 31, 2012 for further information on these and other factors affecting us. Although we believe that these forward-looking statements are based on reasonable estimates and assumptions, they are not guaranties 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. In light of the significant uncertainties inherent in forward-looking statements, 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 2nd Quarter 2013 Earnings Presentation

Q2 2013 Results 3 2nd Quarter 2013 Earnings Presentation $86.0 $79.7 ($94.2) $22.2 $65.8 Q2 2012 Q3 2012 Q4 2012 Q1 2013 Q2 2013 Net Income to Common Stockholders (in millions) • Net income applicable to common stockholders of $65.8 million, up 197% from prior quarter (PQ) but down 24% year-over year (YoY) • Q2 2013 results include: • $44.2 million of income from legal settlements • $18.2 million of income from MSR sale • Loss of $3.0 million from NPL and TDR sale • Diluted earnings per share of $1.10 • Return on average assets of 2.03% and return on average equity of 21.23% • Efficiency ratio of 65.3%, compared to 81.7% in PQ and 53.7% YoY • Tier 1 leverage ratio (Bank) of 11.00%, compared to 10.14% in PQ and 9.07% YoY • Significant improvement in credit quality • Total non-performing loans decreased by 30% from prior quarter, ALLL / NPL coverage ratio improved to 94.2% • Total troubled debt restructurings ("TDRs") decreased by 26% from prior quarter • Pipeline of active repurchase requests decreased to $115.0 million, representation and warranty reserve remained flat at $185.0 million

Summary of Financial Results 4 (1) Net servicing revenue includes net loan administration income and net gain (loss) on trading securities. (2) Excludes loans carried under the fair value option. (3) See Non-GAAP reconciliation. 2nd Quarter 2013 Earnings Presentation (in millions, except per share data) Q2 2013 Q1 2013 Q2 2012 Net Interest Income $47.1 $55.7 $75.5 Provision $31.6 $20.4 $58.4 Gain on Loan Sale $144.8 $137.5 $212.7 Net Servicing Revenue (1) $36.2 $20.4 $28.7 Net Income Applicable to Common Shareholders $65.8 $22.2 $86.0 Diluted Earnings / (Loss) per Share $1.10 $0.33 $1.47 Total Assets $12,735.0 $13,094.2 $14,368.4 Total Stockholders' Equity $1,253.7 $1,184.0 $1,178.3 Return on Average Assets 2.03% 0.65% 2.37% Return on Average Equity 21.23% 7.55% 31.09% Book Value per Common Share $17.66 $16.46 $16.50 NPLs / Gross Loans HFI 5.74% 7.79% 6.59% NPAs / Total Assets (Bank) 2.71% 3.70% 3.75% ALLL / NPLs 94.2% 78.5% 66.5% ALLL / Gross Loans HFI (2) 5.75% 6.11% 4.38% NPAs / Tier 1 Capital + Allowance for Loan Losses (3) 21.1% 30.1% 34.0% NPAs/ Loans HFI and Repossessed Assets 7.52% 9.96% 8.09% Tier 1 Leverage to Adjusted Assets Ratio 11.00% 10.14% 9.07% Total Risk Based Capital Ratio 25.01% 22.53% 17.03% Total Equity / Total Assets 9.84% 9.04% 8.20%

Condensed Income Statement 5 Totals may not foot due to rounding 2nd Quarter 2013 Earnings Presentation (in millions, except per share data) Q2 2013 Q1 2013 Q2 2012 Net interest income $47.1 $55.7 $75.5 Provision for loan losses 31.6 20.4 58.4 Net interest income after provision for loan losses 15.5 35.3 17.1 Non-interest income 220.0 184.9 240.3 Non-Interest expense 174.4 196.6 169.5 Income before federal income taxes 61.1 23.6 87.9 (Benefit) provision for federal income taxes (6.1) - 0.5 Net income 67.2 23.6 87.4 Preferred stock dividend/accretion (1.4) (1.4) (1.4) Net income applicable to common stockholders $65.8 $22.2 $86.0 Diluted Earnings per Share $1.10 $0.33 $1.47

Select Balance Sheet Items 6 (in millions) June 30, 2013 March 31, 2013 June 30, 2012 Total assets $12,735.0 $13,094.2 $14,368.4 Cash and interest earning deposits $2,704.4 $2,230.7 $1,270.4 Residential first mortgage loans 2,627.9 2,991.4 3,102.1 Second mortgage loans 180.8 112.4 127.4 Commercial real estate loans 476.5 562.9 1,075.0 Warehouse loans 676.5 750.8 1,261.4 Consumer lending (including HELOC and other) 363.8 212.3 255.8 Other commercial loans 165.5 113.5 728.4 Investment loan portfolio $4,491.2 $4,743.3 6,550.3 Loans held for sale 2,331.5 2,677.3 2,459.5 Loans repurchased with government guarantees 1,509.4 1,604.9 1,999.1 Trading Securities 50.0 170.1 169.8 Investment securities available - for- sale 92.9 169.8 424.8 Mortgage servicing rights 729.0 727.2 638.9 Totals may not foot due to rounding 2nd Quarter 2013 Earnings Presentation

7 Regulatory Capital Ratios 2nd Quarter 2013 Earnings Presentation 9.61% 9.87% 10.07% 9.31% 8.95% 8.64% 9.07% 9.31% 9.26% 10.14% 11.00% 18.55% 20.51% 19.73% 17.64% 16.64% 16.06% 17.03% 17.58% 17.18% 22.53% 25.01% 5.00% 10.00% 15.00% 20.00% 25.00% 30.00% Dec-10 Mar-11 Jun-11 Sep-11 Dec-11 Mar-12 Jun-12 Sep-12 Dec-12 Mar-13 Jun-13 Tier 1 leverage ratio Total risk-based capital ratio

Q1 2013 to Q2 2013 Income Bridge 8 2nd Quarter 2013 Earnings Presentation $22.2 $65.8 ($9.9) $1.4 ($11.2) ($3.4) $15.8 $7.3 ($11.5) $35.8 ($8.8) $0.5 $6.2 $2.0 $1.7 $12.4 $3.4 ($4.3) $6.0 ($10.0) $0.0 $10.0 $20.0 $30.0 $40.0 $50.0 $60.0 $70.0 Legend: Higher income / lower expense Lower income / higher expense ($ in millions)

Primary Credit-Related Costs 2nd Quarter 2013 Earnings Presentation 9 (in millions) $58.4 $52.6 $50.4 $20.4 $31.6 $20.9 $12.5 $21.2 $16.4 $15.9 $46.0 $124.5 $25.2 $17.4 $28.9 $0 $20 $40 $60 $80 $100 $120 $140 $160 $180 $200 Q2 2012 Q3 2012 Q4 2012 Q1 2013 Q2 2013 Provision for loan losses Asset resolution Representation and warranty reserve – change in estimate

Bank Net Interest Income and Margin 2nd Quarter 2013 Earnings Presentation (in millions) $77.2 $74.8 $75.6 $57.3 $48.7 2.37% 2.21% 2.26% 1.89% 1.72% 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 $80 $90 Q2 2012 Q3 2012 Q4 2012 Q1 2013 Q2 2013 Net interest income Net interest margin (Bank) 10

Cost of Funds 2nd Quarter 2013 Earnings Presentation (in millions) $18.3 $17.8 $15.0 $13.5 $12.1 $27.4 $27.1 $24.8 $24.2 $24.2 $1.7 $1.8 $1.7 $1.7 $1.6 1.72% 1.73% 1.60% 1.54% 1.58% 0.60% 0.80% 1.00% 1.20% 1.40% 1.60% 1.80% 2.00% $0 $10 $20 $30 $40 $50 $60 $70 Q2 2012 Q3 2012 Q4 2012 Q1 2013 Q2 2013 Deposit interest expense FHLB interest expense Other interest expense Average funding cost 11

Note: Retail core deposits include checking accounts, savings accounts, and money market accounts. 12 Retail Core Deposits 2nd Quarter 2013 Earnings Presentation (in millions) $2,950.0 $2,795.0 $3,192.0 $3,611.0 $3,759.0 48.6% 46.1% 50.1% 58.0% 63.6% 0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% 70.0% 80.0% 90.0% $0 $1,000 $2,000 $3,000 $4,000 Q2 2012 Q3 2012 Q4 2012 Q1 2013 Q2 2013 Retail core deposits Retail core deposits / retail deposits

$212.7 $334.4 $239.0 $137.5 $144.8 $0 $50 $100 $150 $200 $250 $300 $350 $400 Q2 2012 Q3 2012 Q4 2012 Q1 2013 Q2 2013 Net gain on loan sales 13 Net Gain on Loan Sales and Margin 2nd Quarter 2013 Earnings Presentation Q2 2012 Q3 2012 Q4 2012 Q1 2013 Q2 2013 Fallout Adjusted Mortgage Locks (billions) $13.3 $14.0 $12.6 $9.8 $9.8 Net Margin (fallout adjusted) 1.59% 2.39% 1.90% 1.40% 1.47% Loans sales and securitizations $12.8 $13.9 $15.6 $12.8 $11.1 Net Margin (loan sales) 1.66% 2.42% 1.53% 1.07% 1.30% Gross Mortgage Locks (billions) $17.5 $18.1 $16.2 $12.1 $12.4 Mortgage Originations (billions) $12.5 $14.5 $15.4 $12.4 $10.9 (in millions)

14 Gross Mortgage Locks 2nd Quarter 2013 Earnings Presentation (in millions) $3,896.5 $4,185.6 $4,059.6 $5,316.5 $3,676.4 $3,366.4 $- $2,000 $4,000 $6,000 Jan-13 Feb-13 Mar-13 Apr-13 May-13 Jun-13 Gross Mortgage Locks

$3,325 $3,268 $2,916 $2,339 $3,146 $9,223 $11,246 $12,441 $10,084 $7,736 $0 $2,000 $4,000 $6,000 $8,000 $10,000 $12,000 $14,000 $16,000 $18,000 Q2 2012 Q3 2012 Q4 2012 Q1 2013 Q2 2013 Purchase Originations Refinance Originations $1,522.9 $1,741.0 $1,521.7 $1,168.0 $887.4 $699.5 $1,314.2 $1,566.5 $1,032.5 $665.4 $10,324.6 $11,458.8 $12,268.7 $10,222.5 $9,329.2 $0 $2,000 $4,000 $6,000 $8,000 $10,000 $12,000 $14,000 Q2 2012 Q3 2012 Q4 2012 Q1 2013 Q2 2013 HARP 2.0 Jumbo Conventional and other $751 $962 $999 $697 $575 $3,157 $4,118 $4,525 $3,201 $2,975 $8,639 $9,434 $9,833 $8,525 $7,332 $0 $2,000 $4,000 $6,000 $8,000 $10,000 $12,000 $14,000 $16,000 $18,000 Q2 2012 Q3 2012 Q4 2012 Q1 2013 Q2 2013 Retail Broker Correspondent 15 Residential First Mortgage Origination Breakout $15,357 $14,514 $12,547 $12,423 2nd Quarter 2013 Earnings Presentation (in millions) (in millions) (in millions) $12,547 $14,514 $15,357 $12,423 $10,882 $10,882

16 Purchase / Refinance Mix Versus Industry 2nd Quarter 2013 Earnings Presentation 0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% 70.0% Q1 2008 Q2 2008 Q3 2008 Q4 2008 Q1 2009 Q2 2009 Q3 2009 Q4 2009 Q1 2010 Q2 2010 Q3 2010 Q4 2010 Q1 2011 Q2 2011 Q3 2011 Q4 2011 Q1 2012 Q2 2012 Q3 2012 Q4 2012 Purchase Mix – All Channels Flagstar Purchase % Industry Purchase % 0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% 70.0% Q1 2008 Q2 2008 Q3 2008 Q4 2008 Q1 2009 Q2 2009 Q3 2009 Q4 2009 Q1 2010 Q2 2010 Q3 2010 Q4 2010 Q1 2011 Q2 2011 Q3 2011 Q4 2011 Q1 2012 Q2 2012 Q3 2012 Q4 2012 Purchase Mix by Channel Flagstar Broker Purchase % Flagstar Correspondent Purchase % Flagstar Retail Purchase % Industry Purchase % In early 2009, Flagstar closed a number of underperforming home lending centers (108 at 12/31/2008) Source: Industry data from Inside Mortgage Finance.

$58.2 $55.4 $60.5 $56.5 $24.0 $74.8 $54.1 $84.7 $89.4 $72.2 $298.6 $289.4 $254.6 $223.4 $161.7 $0 $50 $100 $150 $200 $250 $300 $350 $400 $450 $500 Q2 2012 Q3 2012 Q4 2012 Q1 2013 Q2 2013 Non-performing loans held-for-investment Non-performing TDRs at inception but performing for less than six months Non-performing TDRs $398.9 $399.8 $369.3 $257.9 17 2nd Quarter 2013 Earnings Presentation Non-Performing Loan Breakout $431.6 (in millions)

HPI Performance for Largest State Concentrations 18 2nd Quarter 2013 Earnings Presentation 5.3% 3.2% 2.2% 2.0% 16.6% 10.4% 9.6% 6.7% 0% 2% 4% 6% 8% 10% 12% 14% 16% 18% CA MI FL US HPI Growth by State 1Q 2013 growth rate Prior year growth rate Source: Change in FHFA State House Price Indexes (Seasonally Adjusted, Purchase-Only Index, as of 2013Q1). Three largest state concentrations in Flagstar’s first mortgage portfolio

19 2nd Quarter 2013 Earnings Presentation Consumer Non-Performing Loan Portfolio $217.8 $244.6 $260.7 $255.6 $213.5 $293.5 $276.3 $313.4 $303.2 $194.2 $0 $50 $100 $150 $200 $250 $300 $350 Q2 2012 Q3 2012 Q42012 Q1 2013 Q2 2013 Consumer Allowance for Loan Losses Consumer Non-Performing Loans (in millions)

$58.2 $55.4 $60.5 $56.5 $24.0 $74.8 $54.1 $84.7 $89.4 $72.2 $576.2 $614.3 $589.8 $598.1 $451.1 $0 $100 $200 $300 $400 $500 $600 $700 $800 Q2 2012 Q3 2012 Q42012 Q1 2013 Q2 2013 Non-performing TDRs Performing nonaccrual Performing accrual $709.2 $723.8 $735.0 $744.0 $547.3 20 Troubled Debt Restructuring (TDR) Portfolio 2nd Quarter 2013 Earnings Presentation (in millions) Q1 2013 Q2 2013 $598.0 $451.1 Additions $33.3 $10.4 $(9.1) $(157.4) $(22.2) $(2.0) Transfer From Non- Perf. TDR Transfer To Non- Perf. TDR Transfer Out Pay- Downs Performing TDR Roll-forward Q1 2013 Q2 2013 $145.9 $96.2 Additions $16.4 $(48.2) $(13.5) $(3.1) Transfer To Perf. TDR Transfer From Perf. TDR Transfer Out Pay- Downs Non-performing TDR Roll-forward Sales Sales ($ in millions) ($ in millions) $(10.4) $9.1 95.6% currently paying as agreed

$20.2 $309.3 $376.7 $63.2 $304.4 $12.5 70% 138% 98% 76% 44% 35% 29% 58% 15% 8% 19% 12% 0% 20% 40% 60% 80% 100% 120% 140% 160% $0 $50 $100 $150 $200 $250 $300 $350 $400 2013 2014 2015 2016 2017 Thereafter Reset Year UPB Payment Shock to Average Current Monthly Payment Payment Shock to Average Original Monthly Payment 21 2nd Quarter 2013 Earnings Presentation Current Interest Only Loans – Payment Shock vs. Current and Original Monthly Payments (in millions)

22 2nd Quarter 2013 Earnings Presentation Credit Quality of Interest Only Portfolio 724 731 720 722 724 726 728 730 732 Q2 2013 Average FICO Origination Current 75% 90% 65% 70% 75% 80% 85% 90% 95% Q2 2013 Average LTV Origination Current

23 2nd Quarter 2013 Earnings Presentation Legacy 2nd Mortgage and HELOC Portfolio 730 724 720 722 724 726 728 730 732 Q2 2013 Average Original FICO 2nd Mortgages HELOCs (in millions) $179.9 $302.0 $0 $50 $100 $150 $200 $250 $300 $350 Q2 2013 Balances 2nd Mortgages HELOCs 7.22% 5.70% 0% 1% 2% 3% 4% 5% 6% 7% 8% Q2 2013 Average Note Rate 2nd Mortgages HELOCs Note: Legacy defined as loans originated in 2009 and prior.

$469.8 $425.6 $224.2 $187.0 $115.0 21.1% 9.0% 15.0% 9.9% 7.5% 0.00% 5.00% 10.00% 15.00% 20.00% 25.00% 30.00% $0 $100 $200 $300 $400 $500 Q2 2012 Q3 2012 Q4 2012 Q1 2013 Q2 2013 Repurchase Pipeline Repurchase Pipeline % demands 180+ days old 1,572 1,100 826 1,037 662 208 216 199 202 138 0 200 400 600 800 1000 1200 1400 1600 1800 2000 Q2 2012 Q3 2012 Q4 2012 Q1 2013 Q2 2013 Repurchase Demands (units) Fannie Mae Freddie Mac 2,910 1,224 1,659 2572 3765 1,502 1,664 1,595 803 742 0 500 1000 1500 2000 2500 3000 3500 4000 4500 5000 Q2 2012 Q3 2012 Q4 2012 Q1 2013 Q2 2013 Audit File Pulls (units) Fannie Mae Freddie Mac 24 Representation and Warranty Reserve Details 2nd Quarter 2013 Earnings Presentation (in millions) 2Q12 3Q12 4Q12 1Q13 2Q13 Beginning balance $142.0 $161.0 $202.0 $193.0 $185.0 Additions $51.7 $130.9 $32.5 $23.2 $34.0 Net charge-offs ($32.7) ($89.9) ($41.5) ($31.2) ($34.0) Ending Balance $161.0 $202.0 $193.0 $185.0 $185.0 Totals may not foot due to rounding (in millions) 4,412 2,888 3,254 1,025 1,780 1,316 3,375 1,239 4,507 800

2nd Quarter 2013 Earnings Presentation Efficiency Ratio and NIE Trends (1) See Non-GAAP reconciliation. * Includes expenses related to legal reserves of $40.0 million and $188.5 million incurred during 3Q 2012 and 4Q 2012, respectively. 25 $65.5 $67.4 $72.1 $77.2 $71.0 $17.8 $20.0 $22.2 $17.5 $15.4 $18.7 $18.8 $19.2 $19.4 $22.2 $12.1 $12.6 $12.2 $11.2 $7.8 $11.1 $15.7 $18.6 $17.1 $15.4 $13.1 $57.2 $213.4 $28.8 $16.4 $10.4 $29.4 $19.1 $8.9 $10.4 $- $50 $100 $150 $200 $250 $300 $350 $400 Q2 2012 Q3 2012 * Q4 2012 * Q1 2013 Q2 2013 Non-Interest Expense Compensation and Benefits Commissions Occupancy and Equipment FDIC Premiums Loan Processing Expense Legal and Professional Expense Other 53.7% 67.3% 65.9% 81.7% 65.3% 41.1% 46.9% 56.0% 69.8% 53.5% 0% 20% 40% 60% 80% 100% Q2 2012 Q3 2012 * Q4 2012 * Q1 2013 Q2 2013 Efficiency Ratio Trends Efficiency Ratio Efficiency Ratio - Credit Adjusted (1)

2nd Quarter 2013 Earnings Presentation 26 Appendix

2nd Quarter 2013 Earnings Presentation 27 Summary Asset Quality (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 $38.4 million of charge-offs related to the sale of non-performing loans sold in the second quarter of 2013. (3) Excludes loans carried under fair value option. Totals may not foot due to rounding (in millions) Q2 2013 Q1 2013 Q2 2012 Consumer (1) $60.9 $58.4 $62.1 Commercial (1) $0.2 $1.5 $1.7 Total 30 - 59 Days Past Due $60.1 $59.8 $63.8 Consumer (1) $13.4 $20.5 $24.8 Commercial (1) $22.7 $6.4 $2.3 Total 60 - 89 Days Past Due $36.2 $26.9 $27.1 Consumer (1) $194.2 $303.2 $293.5 Commercial (1) $63.8 $66.1 $138.1 Total Greater than 90 days Past Due $258.0 $369.3 $431.6 Non-performing Assets $344.3 $483.7 $538.8 To Total Assets (Bank only) 2.71% 3.70% 3.75% Provision for Loan Losses $31.6 $20.4 $58.4 Charge-offs, Net of Recoveries(2) $78.6 $35.4 $52.4 Allowance for Loan Losses $243.0 $290.0 $287.0 To Loans Held for Investment (3) 5.75% 6.11% 4.38% To Non-performing Loans 94.2% 78.5% 66.5% Real Estate Owned $86.4 $114.4 $107.2

2nd Quarter 2013 Earnings Presentation 28 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. Totals may not foot due to rounding (in thousands) State HFS HFI ARM Fixed Balloon Total % of Total ARM Fixed Balloon Total % of Total CA $ 39,154 $ 736,848 $ - $ 776,002 34.7% $ 423,441 $ 245,611 $ 16,648 $ 685,700 26.3% FL 2,653 163,999 - 166,652 7.5% 229,951 131,064 11,498 372,513 14.3% MI 2,508 103,222 - 105,730 4.7% 207,277 54,545 13,621 275,442 10.6% WA 6,528 64,856 - 71,384 3.2% 76,668 45,097 5,864 127,629 4.9% AZ 1,791 62,784 - 64,576 2.9% 70,681 36,896 3,058 110,635 4.2% CO 1,876 62,275 - 64,151 2.9% 50,102 22,722 5,046 77,870 3.0% MD 1,367 53,120 - 54,487 2.4% 42,007 32,730 4,215 78,951 3.0% NY 1,201 68,155 - 69,356 3.1% 31,432 36,613 3,921 71,966 2.8% VA 2,322 56,864 - 59,186 2.6% 42,305 20,884 4,681 67,870 2.6% TX 4,445 166,773 - 171,218 7.7% 27,166 33,440 2,064 62,670 2.4% NJ 1,681 37,741 - 39,422 1.8% 28,677 24,831 3,108 56,616 2.2% NV - 12,923 - 12,923 0.6% 35,922 13,212 2,334 51,469 2.0% IL 2,837 45,136 - 47,973 2.1% 29,377 21,687 2,451 53,515 2.1% GA 278 44,546 - 44,824 2.0% 29,039 24,719 2,030 55,788 2.1% OH - 18,057 - 18,057 0.8% 31,530 9,379 852 41,761 1.6% OTHER 9,621 460,135 - 469,756 21.0% 226,978 168,600 19,723 415,300 15.9% Total : $ 78,264 $ 2,157,434 $ - $ 2,235,698 100% $ 1,582,553 $ 922,030 $ 101,113 $ 2,605,696 100%

2nd Quarter 2013 Earnings Presentation 29 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. Totals may not foot due to rounding (in thousands) Year HFS HFI ARM Fixed Balloon Total % of Total ARM Fixed Balloon Total % of Total Older $ - $ - $ - $ - 0.0% $ 188,830 $ 42,851 $ 8,907 $ 240,588 9.2% 2004 - 142 - 142 0.0% 474,536 29,487 9,693 513,716 19.7% 2005 100 334 - 434 0.0% 481,102 50,804 17,528 549,434 21.1% 2006 32 587 - 619 0.0% 105,970 117,052 14,817 237,840 9.1% 2007 - 2,729 - 2,729 0.1% 259,487 488,414 46,922 794,824 30.5% 2008 - 7,556 - 7,556 0.3% 13,854 104,585 3,245 121,684 4.7% 2009 - 6,579 - 6,579 0.3% 7,179 44,800 - 51,979 2.0% 2010 - 1,253 - 1,253 0.1% 8,137 14,483 - 22,620 0.9% 2011 - 115 - 115 0.0% 18,347 14,087 - 32,434 1.2% 2012 - 198 - 198 0.0% 17,918 14,133 - 32,051 1.2% 2013 78,132 2,137,942 - 2,216,074 99.1% 7,193 1,334 - 8,527 0.3% Total : $ 78,264 $ 2,157,434 $ - $ 2,235,698 100% $ 1,582,553 $ 922,030 $ 101,113 $ 2,605,696 100%

2nd Quarter 2013 Earnings Presentation 30 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 HFS HFI ARM Fixed Balloon Total % of Total ARM Fixed Balloon Total % of Total < 580 $ - $ 2,241 $ - $ 2,241 0.1% $ 18,433 $ 32,766 $ 1,376 $ 52,576 2.0% 580 - 619 - 6,256 - 6,256 0.3% 20,809 53,151 1,784 75,744 2.9% 620 - 659 517 109,226 - 109,743 4.9% 97,959 101,305 7,055 206,318 7.9% 660 - 699 7,123 306,784 - 313,907 14.0% 417,214 230,832 36,249 684,295 26.3% > 699 70,624 1,732,927 - 1,803,551 80.7% 1,028,138 503,975 54,649 1,586,762 60.9% Total : $ 78,264 $ 2,157,434 $ - $ 2,235,698 100% $ 1,582,553 $ 922,030 $ 101,113 $ 2,605,696 100%

2nd Quarter 2013 Earnings Presentation 31 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. Totals may not foot due to rounding (in thousands) Original LTV HFS HFI ARM Fixed Balloon Total % of Total ARM Fixed Balloon Total % of Total <=70.00% $ 50,844 $ 668,681 $ - $ 719,525 32.2% $ 414,466 $ 228,451 $ 21,840 $ 664,757 25.5% >70.00% - 79.99% 18,013 637,044 - 655,057 29.3% 973,967 463,314 60,704 1,497,985 57.5% >80.00% - 89.99% 3,746 220,694 - 224,440 10.0% 103,623 83,484 11,699 198,806 7.6% >90.00% - 99.99% 5,422 501,558 - 506,980 22.7% 88,877 138,228 6,641 233,746 9.0% 100.00% -109.99% 207 86,526 - 86,733 3.9% 1,242 5,852 - 7,094 0.3% 110.00% -124.99% - 21,350 - 21,350 1.0% 379 2,108 110 2,597 0.1% >125.00% 32 21,581 - 21,613 1.0% - 592 119 711 0.0% Total: $ 78,264 $ 2,157,434 $ - $ 2,235,698 100% $ 1,582,554 $ 922,029 $ 101,113 $ 2,605,696 100%

2nd Quarter 2013 Earnings Presentation 32 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. Totals may not foot due to rounding (in thousands) HPI Adjusted LTV HFS HFI ARM Fixed Balloon Total % of Total ARM Fixed Balloon Total % of Total <=70.00% $ 50,844 $ 668,681 $ - $ 719,525 32.2% $ 420,996 $ 123,932 $ 14,533 $ 559,461 21.5% 70.00% - 79.99% 18,013 637,044 - 655,057 29.3% 300,506 119,790 10,310 430,606 16.5% 80.00% - 89.99% 3,746 220,694 - 224,440 10.0% 263,416 145,899 17,519 426,834 16.4% 90.00% - 99.99% 5,422 501,558 - 506,980 22.7% 204,132 170,703 14,893 389,728 15.0% 100.00% -109.99% 207 86,526 - 86,733 3.9% 157,044 137,607 14,076 308,727 11.8% 110.00% -124.99% - 21,350 - 21,350 1.0% 150,565 118,996 19,232 288,793 11.1% >=125.00% 32 21,581 - 21,613 1.0% 85,893 105,103 10,551 201,547 7.7% Total : $ 78,264 $ 2,157,434 $ - $ 2,235,698 100% $ 1,582,552 $ 922,030 $ 101,114 $ 2,605,696 100%

2nd Quarter 2013 Earnings Presentation 33 Asset Quality by Loan Type - HFI Note: Non-performing loans include 90+ days delinquent and matured, and performing non-accruals. Totals may not foot due to rounding (in thousands) Loan Type Balance Non-performing Loans % of Balance % of Overall NPLs Q2 '13 Charge Offs, Net of Recoveries Collectively Evaluated Reserves (1) Individually Evaluated Reserves (2) Total Reserves Residential first mortgage $2,627,979 $182,967 6.96% 70.94% ($56,412) $67,264 $110,070 $177,334 Second mortgage 180,802 2,928 1.62% 1.14% (1,946) 10,870 7,969 18,839 Warehouse 676,454 54 0.01% 0.02% - 721 - 721 HELOC 321,576 8,036 2.50% 3.12% (355) 11,735 3,133 14,868 Consumer 42,293 166 0.39% 0.06% (667) 1,780 - 1,780 Commercial RE 476,500 58,243 12.22% 22.58% (19,191) 27,253 69 27,322 Commercial NRE 165,549 5,542 3.35% 2.15% 8 2,052 84 2,136 Total: $4,491,153 $257,936 5.74% 100.00% ($78,563) $121,675 $121,325 $243,000 (1) Represents loans collectively evaluated for impairment in accordance with ASC 450-20, Loss Contingencies, 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, and pursuant to amendments by ASU 2010-20 regarding allowance for impaired loans.

2nd Quarter 2013 Earnings Presentation 34 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. Totals may not foot due to rounding (in thousands) State Mortgage Percent of Mortgage Second Mortgage HELOC Warehouse Commercial Real Estate Commercial Consumer Total Percent of Total MI $13,279 7.3% $413 $1,754 $0 $29,400 $145 $162 $45,153 17.5% FL 41,566 22.7% 410 809 - 250 191 - 43,226 16.8% CA 27,227 14.9% 500 1,106 - 3,697 - - 32,531 12.6% IN 2,163 1.2% 277 53 - 13,313 - 2 15,808 6.1% NY 12,221 6.7% 170 339 - - - - 12,730 4.9% NJ 11,234 6.1% - 211 - - - - 11,445 4.4% VA 5,141 2.8% 88 63 - 5,324 - - 10,617 4.1% MO 1,574 0.9% - 54 - - 5,206 - 6,835 2.6% MD 6,408 3.5% 11 327 - - - - 6,745 2.6% AZ 4,931 2.7% 202 719 - 874 - - 6,726 2.6% WA 5,570 3.0% 197 718 - - - - 6,485 2.5% GA 3,539 1.9% 73 211 - 2,334 - 2 6,158 2.4% IL 4,067 2.2% 175 2 - 570 - - 4,814 1.9% TX 4,606 2.5% - - - - - - 4,606 1.8% NC 4,202 2.3% - 254 - - - - 4,456 1.7% Other 35,242 19.3% 411 1,414 54 2,481 - - 39,602 15.4% Total $182,967 100.0% $2,928 $8,036 $54 $58,243 $5,542 $166 $257,936 100.0%

2nd Quarter 2013 Earnings Presentation 35 Non-performing Loans HFI – by Vintage Totals may not foot due to rounding 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 Warehouse Commercial Real Estate Commercial Consumer Total Percent of Total Older $11,015 5.8% $133 $1,340 $0 $11,873 $0 $14 $24,374 9.4% 2004 17,848 9.2% 27 717 - 312 - 3 18,907 7.3% 2005 22,050 11.5% 854 2,565 - 2,736 - 19 28,223 10.9% 2006 18,789 10.1% 149 2,407 - 23,749 57 5 45,155 17.5% 2007 66,212 40.0% 1,751 1,007 - 4,844 - 5 73,818 28.6% 2008 32,654 16.2% - - - 6,683 50 2 39,390 15.3% 2009 8,305 4.2% 15 - - 45 - - 8,364 3.2% 2010 2,429 1.4% - - - 163 191 33 2,815 1.1% 2011 3,128 1.4% - - - 1,727 4,274 6 9,135 3.5% 2012 536 0.2% - - 54 - 664 75 1,328 0.5% 2013 0 0.0% - - - 6,112 306 5 6,424 2.5% Total $182,967 100.0% $2,928 $8,036 $54 $58,243 $5,542 $166 $257,936 100%

2nd Quarter 2013 Earnings Presentation 36 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 (1) Approximately $514.3 million of retail CDs represent government deposit relationships that have been exchanged for retail CDs as part of our participation in the CDARs program at June 30, 2013. (millions) June 30, 2013 March 31, 2013 June 30, 2012 Balance Rate Balance Rate Balance Rate Retail Deposits: Demand deposits $ 743 0.11% $728 0.13% $631 0.14% Savings deposits 2,688 0.67% 2,513 0.78% 1,846 0.69% Money market deposits 329 0.23% 370 0.29% 474 0.47% Certificates of deposit 2,154 0.90% 2,613 0.89% 3,126 1.25% Total retail deposits 5,914 0.66% 6,224 0.72% 6,076 0.90% Core retail deposits / retail deposits 63.58% 58.02% 48.55% Government Banking Deposits: Demand deposits 118 0.35% 103 0.37% 126 0.38% Savings deposits 164 0.30% 213 0.29% 244 0.56% Certificates of deposit 373 0.48% 459 0.53% 351 0.62% Total government banking deposits 655 0.41% 775 0.44% 721 0.56% Company controlled deposits 827 0.00% 774 0.00% 1,786 0.00% Wholesale deposits 74 4.81% 74 4.81% 339 3.52% Total deposits $ 7,470 0.61% $7,847 0.62% $8,923 0.79% Number of banking branches 111 111 111

2nd Quarter 2013 Earnings Presentation 37 Non – GAAP Reconciliation Totals may not foot due to rounding $ in millions Q2 2013 Q1 2013 Q4 2012 Q3 2012 Q2 2012 Pre-tax, pre-credit-cost revenue Income (loss) before tax provision $61.1 $23.6 ($88.6) $60.7 $87.9 Add back Provision for loan losses 31.6 20.4 50.4 52.6 58.4 Asset resolution 15.9 16.4 21.2 12.5 20.9 Other than temporary impairment on AFS investments 8.8 - - - 1.0 Representation and warranty reserve - change in estimate 28.9 17.4 25.2 124.5 46.0 Write down of residual interest - 0.2 0.8 0.1 1.2 Total credit-related costs $85.2 $54.4 $97.6 $189.7 127.6 Pre-tax, pre-credit-net revenue $146.3 $78.0 $9.0 $250.4 215.5 Efficiency ratio (credit-adjusted) Net interest income (a) 47.1 55.7 73.9 73.1 75.5 Non-interest income (b) 220.0 184.9 285.8 273.7 240.3 Add: Representation and warranty reserve - change in estimate (d) 28.9 17.4 25.2 124.5 46.0 Adjusted income $296.0 $258.0 $384.9 471.3 361.8 Non-interest expense (c) 174.4 196.6 397.9 233.5 169.5 Less: Asset resolution expense (e) (15.9) (16.4) (21.2) (12.5) (20.9) Adjusted non-interest expense 158.5 180.1 376.7 221.0 148.6 Efficiency ratio (c/(a+b)) 65.3% 81.7% 110.6% 67.3% 53.7% Efficiency ratio (credit-adjusted) ((c- e)/((a+b)+d))) 53.5% 69.8% 97.9% 46.9% 41.2%

$ in millions June 30, 2013 March 31, 2013 June 30, 2012 Non-performing assets $344.3 $483.7 $538.8 Tier 1 Capital 1,390.6 1,318.8 1,296.0 Allowance for Loan Losses 243.0 290.0 287.0 Tier 1 Capital + Allowance for Loan Losses $1,633.6 $1,608.8 1,583.0 Non-performing assets/ Tier 1 Capital + Allowance for Loan Losses 21.1% 30.1% 34.0% Non – GAAP Reconciliation (cont’d) 2nd Quarter 2013 Earnings Presentation 38

FBC LISTED NYSE 2nd Quarter 2013 Earnings Presentation