8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

Current Report

Pursuant to Section 13 or 15(d) of the

Securities Exchange Act of 1934

Date of Report (Date of earliest event reported):April 30, 2012

Flagstar Bancorp, Inc.

(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		48,098
(Address of principal executive offices)		(Zip Code)

(248) 312-2000

(Registrant's telephone number, including area code)

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

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

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

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

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

Item 2.02 Results of Operations and Financial Condition

On April 30, 2012, the Company issued a press release regarding its results of operations and financial condition for the three months ended March 31, 2012. The text of the press release is included as Exhibit 99.1 to this report. The Company will include final financial statements and additional analysis for the three months ended March 31, 2012 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 May 1, 2012, the Company held a quarterly conference call to review first quarter 2012 earnings and furnished a slide presentation to accompany the call. A copy of the slide presentation used by the Company on the conference call is furnished as Exhibit 99.2 to this Current Report on Form 8-K and incorporated by reference herein.

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

Item 9.01 Financial Statements and Exhibits

	Exhibits.
99.1	Press release of Flagstar Bancorp, Inc. dated April 30, 2012
99.2	Flagstar Bancorp, Inc. Conference Call Presentation Slides - First Quarter 2012 Financial Results

SIGNATURE

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

	FLAGSTAR BANCORP, INC.
Dated: May 1, 2012		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 April 30, 2012
99.2	Flagstar Bancorp, Inc. Conference Call Presentation Slides - First Quarter 2012 Financial Results

EX-99.1

EXHIBIT 99.1

NEWS RELEASE

For more information, contact:

Paul D. Borja

Executive Vice President / CFO

Bradley T. Howes

Investor Relations Officer

(248) 312-2000

FOR IMMEDIATE RELEASE

Flagstar Reports First Quarter 2012 Results and Reaffirms Expected Return to Profitability in 2012

Pre-tax, pre-credit-cost revenue of $206.3 million, up 109.8 percent over prior quarter and 229.9 percent over prior year;

Strong mortgage banking revenues, stable net interest margin and solid growth in core deposits;

Significant improvement in delinquent loan trends

TROY, Michigan. (April 30, 2012) - Flagstar Bancorp, Inc. (NYSE:FBC) (the “Company”), the holding company for Flagstar Bank, FSB (the “Bank”), today reported a first quarter 2012 net loss applicable to common stockholders of $(8.7) million, an improvement from fourth quarter 2011 net loss of $(78.2) million and first quarter 2011 net loss of $(31.7) million. During the quarter, refinements were made to both the allowance for loan losses and representation and warranty reserve models, consistent with a more conservative posture taken by the Bank's new primary regulator and a continuing evolution of the performance dynamics within the mortgage industry. First quarter 2012 net loss included $114.7 million in loan loss provision expense, which included amounts resulting from refinements to the existing loan loss model, as well as increased loan modification activity resulting from a strategic emphasis on loss mitigation beginning in the fourth quarter 2011. First quarter net loss also included $60.5 million in provisions related to the representation and warranty reserve that reflected both charge-offs of certain loans previously sold into the secondary market and expectations of continued elevated levels of repurchase requests from government sponsored entities (GSEs).

“Our first quarter performance reflects continued improvement and revenue growth in each of our core businesses, driving the historically high level of pre-tax, pre-credit-cost revenue,” commented Joseph P. Campanelli, Chairman of the Board, President and CEO. "Although we incurred substantial credit costs, we remained well-capitalized with significant liquidity, experienced significant improvements in delinquent loan trends, continued our emphasis on putting pre-2009 portfolio challenges behind us, and further aligned our loss models with a more conservative regulatory approach as we transitioned to a new primary regulator. At the same time, we were able to generate record mortgage banking revenues to essentially offset the heightened credit costs."

Campanelli continued, “We believe our ability to continue to generate significant revenue is a testament to the strength of the Flagstar brand, specifically in the mortgage market where we anticipate gaining market share. Our long-held distribution channels and industry-leading position in the mortgage market, as well as the strategic initiatives we recently implemented, are allowing us to take advantage of current market dislocation. Consistent with our business plan, we continue to use revenues from mortgage banking to fuel growth in our other business lines. This includes our commercial lending business, in which we are balancing diversification with strong but

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prudent growth that is funded principally by growth in our lower cost retail core deposit balances.

We believe our business lines are moving in the right direction, and with our continued emphasis on risk management and controlling credit costs, and favorable credit trends, we are reaffirming our previous guidance that we expect to return to profitability during 2012. That view is based on our expectations on economic and business trends as we see them, and is of course subject to many risks related to Flagstar and its business as well as the economy and business conditions more broadly," Campanelli said.

First Quarter Highlights:

• Substantial mortgage banking revenues.

◦ Gain on loan sale income increased by 91.6 percent to $204.9 million, compared to $106.9 million in prior quarter (margin increased from prior quarter by 85.3 percent to 189 basis points).

◦ Net servicing revenue (loan administration income plus gain (loss) on trading securities) of $32.9 million, compared to $29.0 million in prior quarter.

• Stable net interest margin, continued growth in commercial loans and reduced funding costs.

◦ Bank net interest margin remained stable at 2.41 percent, compared to 2.43 percent in prior quarter.

◦ Average commercial loans increased by $135.8 million from prior quarter.

◦ Overall cost of funds declined by 5 basis points to 1.76 percent.

• Remained well-capitalized with significant liquidity.

◦ Tier 1 capital ratio of 8.64 percent and Tier 1 common ratio of 8.58 percent (see non-GAAP reconciliation).

◦ Cash on hand and interest-earning deposits of $757.9 million, in addition to approximately $270 million in liquidity in the form of unencumbered marketable securities and approximately $670 million in unused borrowing capacity at the Federal Home Loan Bank of Indianapolis (FHLB).

• Continued emphasis on credit risk management and reducing the level of non-performing assets.

◦ Robust and segmented loss models believed to be more consistent with peers regulated by the Office of Comptroller of Currency (OCC). All thrifts previously regulated by the Office of Thrift Supervision (OTS) were required to file their first regulatory Call Report for the quarter ended March 31, 2012.

◦ Non-performing loans held-for-investment decreased by 16.7 percent from prior quarter.

◦ Net charge-offs increased to $151.7 million from prior quarter primarily due to the write-off of specific valuation allowances to conform with the OCC's application of regulatory guidance.

◦ Allowance to non-performing loans increased to 69.1 percent, compared to 65.1 percent in prior quarter.

◦ Increased representation and warranty reserve by $22.0 million from prior quarter.

• Net loss applicable to common stockholders of $(8.7) million, or $(0.02) per share.

◦ Pre-tax, pre-credit cost revenue of $206.3 million, or $0.36 per share, a $107.9 million increase from the prior quarter and a $143.7 million increase from first quarter 2011 (see non-GAAP reconciliation).

◦ Total credit related costs of $213.6 million (see non-GAAP reconciliation).

First quarter 2012 net loss of $(0.02) per share (diluted) was based on average shares outstanding of 556,623,000, as compared to a fourth quarter 2011 loss of $(0.14) per share (diluted) based on average shares outstanding of 555,360,000 and net loss of $(0.06) per share (diluted) based on average shares outstanding of 553,555,000 in the first quarter 2011.

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Net Interest Income

First quarter 2012 net interest income was $74.7 million, relatively flat compared to $75.9 million for the fourth quarter 2011. The slight decrease in net interest income from the prior quarter was primarily due to a decline in average interest-earning assets.

Similarly, net interest margin for the Bank was 2.41 percent for the first quarter 2012, relatively flat compared to 2.43 percent for the fourth quarter 2011.

Average interest-earning assets decreased to $12.6 billion in the first quarter 2012, compared to $12.8 billion in the fourth quarter 2011. This decrease was primarily driven by a reduction in the average balances of residential first mortgage loans held-for-investment, reflecting continued pay downs, charge-offs, and occasional loan sales, as well as a reduction in the average balances of residential first mortgage loans held-for-sale and warehouse loans, reflecting a heightened pace of loan sales during the first quarter 2012.

The average cost of funds for the first quarter 2012 was 1.76 percent, an improvement from the prior quarter level of 1.81 percent, arising primarily from a significant increase in lower-cost retail core deposits. The average cost of total retail deposits decreased in the first quarter 2012 to 1.06 percent, compared to 1.15 percent in the fourth quarter 2011.

Non-interest Income

First quarter 2012 non-interest income was $221.4 million, compared to $118.6 million for the fourth quarter 2011. Excluding the expense related to the representation and warranty reserve (discussed in Credit Related Costs and Asset Quality below), non-interest income increased 50.0 percent to $281.9 million in the first quarter 2012, compared to $187.9 million in the fourth quarter 2011. The increase was primarily due to an increase in gain on loan sale income, which the Bank believes is driven by strong industry demand and fewer competitors in the marketplace, as compared to both fourth quarter 2011 and first quarter 2011.

First quarter 2012 gain on loan sales totaled $204.9 million, compared to $106.9 million for the fourth quarter 2011. This increase from the prior quarter was a result of increases in gain on loan sale margin, growth in residential first mortgage rate locks, and higher residential first mortgage originations.

Gain on loan sale margin is calculated based on mortgage rate lock commitments and actual loan sales, and is net of sales expenses, hedging costs and representation and warranty expense (i.e., that portion of the reserve established at the time of sale). Gain on loan sale margin increased to 1.89 percent for the first quarter 2012, compared to 1.02 percent for the fourth quarter 2011. Mortgage rate lock commitments increased 32.4 percent to $14.9 billion during the first quarter 2012, compared to $11.2 billion during the fourth quarter 2011.

Residential first mortgage originations, which are principally comprised of agency-eligible residential first mortgages, increased to $11.2 billion during the first quarter 2012, compared to $10.2 billion in the fourth quarter 2011. Loan sales also increased for the first quarter 2012 to $10.8 billion, compared to $10.5 billion for the fourth quarter 2011.

Loan fees and charges increased to $30.0 million in the first quarter 2012, compared to $28.6 million in the fourth quarter 2011, based on increased originations during the quarter.

Net servicing revenue, which is the combination of net loan administration income (including the off-balance 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 $32.9 million during first quarter 2012, compared to $29.0 million during fourth quarter 2011. This increase from the prior quarter was primarily attributable to effective hedge positioning, despite increased rate volatility.

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Non-interest Expense

First quarter 2012 non-interest expense was $188.7 million, compared to $205.8 million in the fourth quarter 2011. Excluding asset resolution expense, non-interest expense was $152.0 million in the first quarter 2012, compared to $173.4 million in the fourth quarter 2011. The 12.4 percent decrease from prior quarter was primarily driven by a decrease in general and administrative expenses related to the agreement with the Department of Justice (DOJ Agreement) that the Bank entered into on February 24, 2012, but was recognized in the fourth quarter 2011. The efficiency ratio, as adjusted to exclude credit related costs, improved to 42.6 percent during the first quarter 2012, compared to 65.8 percent during the fourth quarter 2011 (see non-GAAP reconciliation).

Compensation, benefits, and commission expense increased to $81.5 million for the first quarter 2012, compared to $74.2 million in fourth quarter 2011. This 9.8 percent increase from prior quarter primarily reflects increased commission expense attributable to the 9.6 percent increase in residential first mortgage loan origination volume from the prior quarter.

General and administrative expenses decreased to $37.8 million in the first quarter 2012, compared to $67.7 million in the fourth quarter 2011. This decrease from the prior quarter was primarily due to a decrease in litigation settlement expense recorded in the fourth quarter 2011 relating to the DOJ Agreement.

Warrant expense was $2.5 million for the first quarter 2012, compared to income of $0.1 million in the fourth quarter 2011, reflecting the increase in the quarterly valuation of the outstanding warrant liability arising from the increase in the market price of the Company's common stock at March 31, 2012, as compared to December 31, 2011.

Balance Sheet and Funding

Total assets at March 31, 2012 were $14.0 billion, compared to $13.6 billion at December 31, 2011. The increase from the prior quarter was the result of a $692.0 million increase in residential first mortgage loans held-for-sale and a $215.6 million increase in commercial and industrial loans, both consistent with targeted growth strategies associated with transitioning to a more diversified full-service bank by using mortgage banking revenues to fund the growth of commercial and small business / middle market lending. These increases were partially offset by a $444.9 million decrease from the prior quarter in the residential first mortgage loan portfolio, which consists primarily of loans originated prior to 2009. The decrease reflects continued success in strategically reducing the level of this portfolio.

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

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 March 31, the Bank's outstanding borrowings on the line were approximately $3.6 billion, and it had approximately $670 million of collateralized borrowing capacity remaining based on pledged collateral. In addition, $757.9 million in cash on hand and interest-earning deposits (excluding other marketable securities) was held on balance sheet.

Credit Related Costs and Asset Quality

Credit related costs consist primarily of loan loss provision expense, provisions related to the representation and warranty reserve, and asset resolution expense. First quarter 2012 credit related costs increased to $213.6 million, compared to $173.2 million in the fourth quarter 2011 (see non-GAAP reconciliation), driven primarily by increases in the loan loss provision expense and provisions related to the representation and warranty reserve.

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Loan loss provision expense for the first quarter 2012 was $114.7 million, compared to $63.5 million in the fourth quarter 2011, which included amounts resulting from refinements to existing loss models as well as heightened loan modification activity during the first quarter 2012. First quarter 2012 loan loss provision expense reflected total net charge-offs of $151.7 million, with a net charge-off ratio of 8.99%, compared to $27.5 million, with a net charge-off ratio of 1.60%, in the fourth quarter 2011.

Net charge-offs related to residential first mortgages comprised $94.6 million of the first quarter total, compared to $18.6 million in the fourth quarter 2011. Net charge-offs related to commercial real estate loans were $43.0 million in the first quarter 2012, as compared to $1.7 million in the fourth quarter 2011. These increases from the prior quarter were primarily driven by a write-off of the specific valuation allowance to conform with the OCC's application of regulatory guidance as the Bank transitioned to Call Report requirements for March 31, 2012, as well as the continued heightened level of loan modifications resulting from strategic emphasis on loss mitigation associated with the pre-2009 loan origination portfolio.

At March 31, 2012, allowance for loan losses to loans held-for-investment was 4.2 percent and allowance for loan losses to non-performing loans held-for-investment was 69.1 percent, compared to 4.5 percent and 65.1 percent, respectively, at December 31, 2011. Allowance for loan losses at March 31, 2012 was $281.0 million, compared to $318.0 million at December 31, 2011.

Total non-performing loans (i.e., loans 90 days or more past due and matured loans), which is generally considered a leading indicator of charge-offs, decreased by 16.7 percent to $406.6 million at March 31, 2012, compared to $488.4 million at December 31, 2011. The decrease from the prior quarter was driven primarily by decreases of $69.7 million in non-performing residential first mortgage loans and $7.1 million in commercial real estate loans. Total delinquent loans (i.e., loans 30 days or more past due) also decreased by 15.8 percent to $533.4 million at March 31, 2012, compared to $633.5 million at December 31, 2011.

The Company maintains a representation and warranty reserve on the balance sheet, which reflects the estimate of probable losses it may incur on loans which have been sold or securitized into the secondary market, primarily to the GSEs. At March 31, 2012, the representation and warranty reserve was $142.0 million, an 18.3 percent increase compared to $120.0 million at December 31, 2011. The representation and warranty reserve remains elevated given the continued high level of loan repurchase and reimbursement demands from the GSEs. In the first quarter 2012, provisions related to the representation and warranty reserve, other than as included in our gain on sale computations, were $60.5 million, as compared to $69.3 million in the fourth quarter 2011.

Asset resolution expense, which includes expenses associated with foreclosed properties (including the foreclosure claims in process with respect to government insured loans for which we file claims with the US Department of Housing and Urban Development) increased to $36.8 million in the first quarter 2012, compared to $32.4 million in the fourth quarter 2011. The increase from prior quarter was driven primarily by mark downs on foreclosed commercial real estate properties.

Capital

The Bank remained “well-capitalized” for regulatory purposes at March 31, 2012, due to its regulatory capital ratios of 8.64 percent for Tier 1 capital and 16.06 percent for total risk-based capital. At March 31, 2012, the Company had a Tier 1 common to risk-weighted assets ratio of 8.58 percent and an equity-to-assets ratio of 7.74 percent.

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Earnings Conference Call

As previously announced, the Company's quarterly earnings conference call will be held on Tuesday, May 1, 2012 from 11:00 a.m. until noon (Eastern).

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

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

To listen by telephone, please call at least 10 minutes prior to the start of the conference call at (866) 294-1212 toll free or (702) 696-4911 and use passcode: 67450807.

About Flagstar

Flagstar Bancorp, Inc. is a full-service financial services company, offering a range of products and services to consumers, businesses, and homeowners. With $14.0 billion in total assets at March 31, 2012, Flagstar is the largest publicly held savings bank headquartered in the Midwest. As of March 31, 2012, Flagstar operated 113 branches in Michigan, 28 home loan centers in 13 states, and a total of four commercial banking offices in Massachusetts, Connecticut, and Rhode Island. Flagstar originates loans nationwide and is one of the leading originators of residential first mortgage loans. For more information, please visit flagstar.com.

Non-GAAP

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

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Forward Looking Statements

This press release contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, as amended. Forward-looking statements, by their nature, involve estimates, projections, goals, forecasts, assumptions, risks and uncertainties that are difficult to predict and could cause actual results or outcomes to differ materially from those expressed in a forward-looking statement. Forward-looking statements contained in this press release and any information related to expectations about future events or results are based upon information available to the Company as of the date hereof. Forward-looking statements can be identified by such words as "anticipates," "intends," "plans," "seeks," "believes," "expects", "estimates," and similar references to future periods. Examples of forward-looking statements include, but are not limited to, statements made regarding the Company's results of operations, current expectations, plans or forecasts of core business drivers, credit related costs, asset quality, capital adequacy and liquidity, the implementation of the Company's business plan and growth strategies, and other similar matters. Forward-looking statements may cause actual results to differ materially from current expectations, therefore you should not place undue reliance on any forward-looking statement and should consider all of the following uncertainties and risks, as well as those more fully discussed in the Company’s filings with the Securities and Exchange Commission ("SEC"), including but not limited to, our Forms 10-K and 10-Q: volatile interest rates that impact, amongst 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; and our ability to control credit related costs and forecast the adequacy of reserves. Except to the extent required under the federal securities laws and the rules and regulations promulgated by the SEC, the Company undertakes no obligation to update any such statement to reflect events or circumstances after the date on which it is made.

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Flagstar Bancorp, Inc.

Consolidated Statements of Financial Condition

(In thousands, except share data)

	March 31, 2012			December 31, 2011			March 31, 2011
Assets	(Unaudited)						(Unaudited)
Cash and cash items	$	46,946		$	49,715		$	49,677
Interest-earning deposits	711,002			681,343			1,665,342
Cash and cash equivalents	757,948			731,058			1,715,019
Securities classified as trading	307,355			313,383			160,650
Securities classified as available-for-sale	448,147			481,352			452,368
Loans held-for-sale ($2,132,842, $1,629,618, and $1,484,824 at fair value at March 31, 2012, December 31, 2011, and March 31, 2011, respectively)	2,492,855			1,800,885			1,609,501
Loans repurchased with government guarantees	2,002,999			1,899,267			1,756,534
Loans held-for-investment ($20,365, $22,651, and $22,198 at fair value at March 31, 2012, December 31, 2011, and March 31, 2011, respectively)	6,659,538			7,038,587			5,764,675
Less: allowance for loan losses	(281,000		)	(318,000		)	(271,000		)
Loans held-for-investment, net	6,378,538			6,720,587			5,493,675
Total interest-earning assets	12,340,896			11,896,817			11,138,070
Accrued interest receivable	108,143			105,200			86,862
Repossessed assets, net	108,686			114,715			146,372
Federal Home Loan Bank stock	301,737			301,737			337,190
Premises and equipment, net	206,573			203,578			233,621
Mortgage servicing rights at fair value	596,830			510,475			635,122
Other assets	332,538			455,236			390,053
Total assets	$	14,042,349		$	13,637,473		$	13,016,967
Liabilities and Stockholders' Equity
Deposits	$	8,599,153		$	7,689,988		$	7,748,910
Federal Home Loan Bank advances	3,591,000			3,953,000			3,400,000
Long-term debt	248,585			248,585			248,610
Total interest-bearing liabilities	12,438,738			11,891,573			11,397,520
Accrued interest payable	10,124			8,723			10,124
Representation and warranty reserve	142,000			120,000			79,400
Other liabilities ($19,100, $18,300, and $0 at fair value at March 31, 2012, December 31, 2011, and March 31, 2011, respectively)	364,066			537,461			292,901
Total liabilities	12,954,928			12,557,757			11,779,945
Stockholders' Equity
Preferred stock $0.01 par value, liquidation value $1,000 per share, 25,000,000 shares authorized; 266,657 issued and outstanding and outstanding at March 31, 2012, December 31, 2011, and March 31, 2011, respectively	256,139			254,732			250,572
Common stock $0.01 par value, 700,000,000 shares authorized; 557,132,814, 555,775,639, and 553,711,848 shares issued and outstanding at March 31, 2012, December 31, 2011, and March 31, 2011, respectively	5,571			5,558			5,537
Additional paid in capital	1,467,476			1,466,461			1,462,620
Accumulated other comprehensive income (loss)	6,167			(7,819		)	(9,760		)
Accumulated deficit	(647,932		)	(639,216		)	(471,947		)
Total stockholders' equity	1,087,421			1,079,716			1,237,022
Total liabilities and stockholders' equity	$	14,042,349		$	13,637,473		$	13,016,967

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Flagstar Bancorp, Inc.

Consolidated Statements of Operations

(In thousands, except per share data)

(Unaudited)

	For the Three Months Ended
	March 31, 2012			December 31, 2011			March 31, 2011
Interest Income
Loans	$	113,908		$	116,790		$	102,115
Securities classified as available-for-sale or trading	8,571			8,929			8,097
Interest-earning deposits and other	412			426			968
Total interest income	122,891			126,145			111,180
Interest Expense
Deposits	18,986			20,944			27,022
FHLB advances	27,394			27,646			29,979
Other	1,778			1,692			1,606
Total interest expense	48,158			50,282			58,607
Net interest income	74,733			75,863			52,573
Provision for loan losses	114,673			63,548			28,309
Net interest income after provision for loan losses	(39,940		)	12,315			24,264
Non-Interest Income
Loan fees and charges	29,973			28,610			16,138
Deposit fees and charges	4,923			6,332			7,500
Loan administration	38,885			28,295			39,336
(Loss) gain on trading securities	(5,971		)	674			(74		)
Loss on trading securities residuals	(409		)	(847		)	(2,381		)
Net gain on loan sales	204,853			106,919			50,184
Net loss on sales of mortgage servicing rights	(2,317		)	(2,823		)	(112		)
Net gain on securities available-for-sale	310			—			—
Net gain (loss) on sale of assets	27			21,379			(1,036		)
Total other-than-temporary impairment gain (loss)	3,872			(11,569		)	—
(Loss) gain recognized in other comprehensive income before taxes	(5,047		)	4,437			—
Net impairment losses recognized in earnings	(1,175		)	(7,132		)	—
Representation and warranty reserve - change in estimate	(60,538		)	(69,279		)	(20,427		)
Other fees and charges, net	12,816			6,493			7,138
Total non-interest income	221,377			118,621			96,266
Non-Interest Expense
Compensation, commissions and benefits	81,455			74,162			63,308
Occupancy and equipment	16,950			19,448			16,618
Asset resolution	36,770			32,408			38,110
Federal insurance premiums	12,324			11,401			8,725
Other taxes	946			606			866
Warrant expense (income)	2,549			138			(827		)
General and administrative	37,752			67,674			20,430
Total non-interest expense	188,746			205,837			147,230
Loss before federal income taxes	(7,309		)	(74,901		)	(26,700		)
Provision for federal income taxes	—			264			264
Net Loss	(7,309		)	(75,165		)	(26,964		)
Preferred stock dividend/accretion	(1,407		)	(3,016		)	(4,710		)
Net loss applicable to common stockholders	$	(8,716	)	$	(78,181	)	$	(31,674	)
Loss per share
Basic	$	(0.02	)	$	(0.14	)	$	(0.06	)
Diluted	$	(0.02	)	$	(0.14	)	$	(0.06	)

9

Flagstar Bancorp, Inc.

Summary of Selected Consolidated Financial and Statistical Data

(Dollars in thousands, except per share data)

(Unaudited)

	For the Three Months Ended
Summary of Consolidated Statements of Operations	March 31, 2012			December 31, 2011			March 31, 2011
Return on average assets	(0.25		)%	(2.21		)%	(0.96		)%
Return on average equity	(3.07		)%	(27.56		)%	(10.17		)%
Efficiency ratio (1)	63.7		%	105.8		%	98.8		%
Efficiency ratio (credit-adjusted) (1)	42.6		%	65.8		%	64.5		%
Equity/assets ratio (average for the period)	8.00		%	8.02		%	9.48		%
Residential first mortgage loans originated	$	11,169,409		$	10,187,100		$	4,856,384
Other loans originated	$	271,445		$	199,529		$	31,464
Mortgage loans sold and securitized	$	10,829,798		$	10,476,542		$	5,829,508
Interest rate spread - Bank only (2)	2.15		%	2.15		%	1.62		%
Net interest margin - Bank only (3)	2.41		%	2.43		%	1.87		%
Interest rate spread - Consolidated (2)	2.13		%	2.13		%	1.61		%
Net interest margin - Consolidated (3)	2.35		%	2.37		%	1.81		%
Average common shares outstanding	556,623,046			555,359,916			553,554,886
Average fully diluted shares outstanding	556,623,046			555,359,916			553,554,886
Average interest earning assets	$	12,640,668		$	12,752,968		$	11,473,046
Average interest paying liabilities	$	10,994,258		$	11,018,201		$	10,460,463
Average stockholder's equity	$	1,136,618		$	1,134,716		$	1,245,229
Charge-offs to average investment loans (annualized)	8.99		%	1.60		%	2.14		%

	March 31, 2012			December 31, 2011			March 31, 2011
Equity/assets ratio	7.74		%	7.92		%	9.50		%
Tier 1 capital ratio (4)	8.64		%	8.95		%	9.87		%
Total risk-based capital ratio (4)	16.06		%	16.64		%	20.51		%
Book value per common share	$	1.49		$	1.48		$	1.78
Number of common shares outstanding	557,132,814			555,775,639			553,711,848
Mortgage loans serviced for others	$	68,207,554		$	63,770,676		$	59,577,239
Weighted average service fee (bps)	28.7			30.8			30.2
Capitalized value of mortgage servicing rights	0.88		%	0.80		%	1.07		%
Ratio of allowance for loan losses to non-performing loans held-for-investment (5)	69.1		%	65.1		%	73.6		%
Ratio of allowance for loan losses to loans held-for-investment (5)	4.22		%	4.52		%	4.70		%
Ratio of non-performing assets to total assets (bank only)	3.67		%	4.43		%	4.26		%
Number of bank branches	113			113			162
Number of loan origination centers	28			27			29
Number of employees (excluding loan officers and account executives)	2,970			2,839			3,030
Number of loan officers and account executives	311			297			306

(1) See Non-GAAP reconciliation.

(2) 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.

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

(4) 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.

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

10

	Loan Originations (Dollars in thousands) (Unaudited)
	For the Three Months Ended
	March 31, 2012				December 31, 2011				March 31, 2011
Consumer loans:
Residential first mortgage	$	11,169,409	97.7	%	$	10,187,100	98.1	%	$	4,856,312	99.3	%
Other consumer	4,479		—	%	3,033		—	%	1,200		0.1	%
Total consumer loans	11,173,888		97.7	%	10,190,133		98.1	%	4,857,512		99.4	%
Commercial loans	266,966		2.3	%	196,496		1.9	%	30,163		0.6	%
Total loan originations	$	11,440,854	100.0	%	$	10,386,629	100.0	%	$	4,887,675	100.0	%

Loans Held-for-Investment

(Dollars in thousands)

(Unaudited)

	March 31, 2012				December 31, 2011				March 31, 2011
Consumer loans:
Residential first mortgage and construction	$	3,304,889	49.7	%	$	3,749,821	53.1	%	$	3,755,018	65.2	%
Second mortgage	132,463		2.0	%	138,912		2.0	%	165,161		2.8	%
Warehouse lending	1,104,205		16.6	%	1,173,898		16.7	%	303,785		5.3	%
HELOC	209,228		3.1	%	221,986		3.2	%	255,012		4.4	%
Other	62,111		0.9	%	67,613		1.0	%	81,037		1.4	%
Total consumer loans	4,812,896		72.3	%	5,352,230		76.0	%	4,560,013		79.1	%
Commercial loans:
Commercial real estate	1,157,911		17.3	%	1,242,969		17.7	%	1,170,198		20.3	%
Commercial and industrial	544,481		8.2	%	328,879		4.7	%	9,326		0.2	%
Commercial lease financing	144,250		2.2	%	114,509		1.6	%	25,138		0.4	%
Total commercial loans	1,846,642		27.7	%	1,686,357		24.0	%	1,204,662		20.9	%
Total loans held-for-investment	$	6,659,538	100.0	%	$	7,038,587	100.0	%	$	5,764,675	100.0	%

11

Composition of Mortgage Loans Held-for-Investment

(In thousands)

(Unaudited)

	March 31, 2012				December 31, 2011
	Portfolio Balance (1)		Allowance (1)		Portfolio Balance (1)		Allowance (1)
Performing modified (TDR)	$	588,892	$	77,132	$	496,187	$	40,760
Performing with government insurance	95,308		—		99,142		—
Other performing	2,463,603		84,728		2,841,053		58,064
Non-performing - 90+ day delinquent	171,700		13,316		323,926		92,082
Non-performing with government insurance	61,733		—		67,938		1,160
30 day and 60 day delinquent	56,116		2,553		60,487		3,818
Total	$	3,437,352	$	177,729	$	3,888,733	$	195,884

	March 31, 2011
	Portfolio Balance (1)		Allowance (1)
Performing modified (TDR)	$	562,570	$	45,309
Performing with government insurance	127,953		—
Other performing	2,958,319		59,684
Non-performing - 90+ day delinquent	146,951		38,986
Non-performing with government insurance	66,460		1,513
30 day and 60 day delinquent	57,926		4,642
Total	$	3,920,179	$	150,134

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

Composition of Commercial Loans Held-for-Investment

(In thousands)

(Unaudited)

	March 31, 2012				December 31, 2011
	Portfolio Balance (1)		Allowance (1)		Portfolio Balance (1)		Allowance (1)
Performing - not impaired	$	1,605,146	$	60,177	$	1,308,000	$	32,970
Special mention - not impaired	72,742		4,837		153,795		12,016
Impaired	82,112		17,266		125,650		32,944
Non-performing - not impaired	53		4		2,928		97
Non-performing	86,589		1,793		95,984		25,560
Total	$	1,846,642	$	84,077	$	1,686,357	$	103,587

	March 31, 2011
	Portfolio Balance (1)		Allowance (1)
Performing - not impaired	$	893,670	$	33,766
Special mention - not impaired	97,624		7,316
Impaired	5,649		957
Non-performing - not impaired	63,915		15,834
Non-performing	143,804		36,429
Total	$	1,204,662	$	94,302

(1) Includes commercial real estate, commercial and industrial, and commercial lease financing loans.

12

Allowance for Loan Losses

(Dollars in thousands)

(Unaudited)

	For the Three Months Ended
	March 31, 2012			December 31, 2011			March 31, 2011
Beginning balance	$	318,000		$	282,000		$	274,000
Provision for loan losses	114,673			63,548			28,309
Charge-offs
Consumer loans:
Residential first mortgage	(95,189		)	(19,042		)	(3,102		)
Second mortgage	(5,283		)	(2,672		)	(5,778		)
Construction	(243		)	—			—
Warehouse lending	—			(562		)	—
HELOC	(6,419		)	(3,515		)	(5,063		)
Other	(1,190		)	(916		)	(839		)
Total consumer loans	(108,324		)	(26,707		)	(14,782		)
Commercial loans:
Commercial real estate	(45,033		)	(2,527		)	(19,289		)
Commercial and industrial	(1,581		)	—			(48		)
Total commercial loans	(46,614		)	(2,527		)	(19,337		)
Total charge-offs	(154,938		)	(29,234		)	(34,119		)
Recoveries
Consumer loans:
Residential first mortgage	549			400			484
Second mortgage	249			65			866
Construction	1			1			1
Warehouse lending	—			—			5
HELOC	257			57			486
Other	212			319			239
Total consumer loans	1,268			842			2,081
Commercial loans:
Commercial real estate	1,992			844			729
Commercial and industrial	5			—			—
Total commercial loans	1,997			844			729
Total recoveries	3,265			1,686			2,810
Charge-offs, net of recoveries	(151,673		)	(27,548		)	(31,309		)
Ending balance	$	281,000		$	318,000		$	271,000
Net charge-off ratio	8.99		%	1.60		%	2.14		%

13

Composition of Allowance for Loan Losses

As of March 31, 2012

(In thousands)

(Unaudited)

	Collectively Evaluated Reserves (1)		Individually Evaluated Reserves (2)		Total
Consumer loans:
Residential first mortgage and construction	$	73,092	$	85,569	$	158,661
Second mortgage	15,724		3,343		19,067
Warehouse lending	1,824		—		1,824
HELOC	14,760		18		14,778
Other	2,593		—		2,593
Total consumer loans	107,993		88,930		196,923
Commercial loans:
Commercial real estate	52,410		19,060		71,470
Commercial and industrial	2,654		—		2,654
Commercial lease financing	9,953		—		9,953
Total commercial loans	65,017		19,060		84,077
Total allowance for loan losses	$	173,010	$	107,990	$	281,000

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

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

Non-Performing Loans and Assets

(Dollars in thousands)

(Unaudited)

	March 31, 2012			December 31, 2011			March 31, 2011
Non-performing loans held-for-investment	$	406,583		$	488,367		$	368,152
Real estate and other non-performing assets, net	108,686			114,715			178,774
Non‑performing assets held-for-investment, net	515,269			603,082			546,926
Non-performing loans available-for-sale	2,842			4,573			6,598
Total non-performing assets including loans available-for-sale	$	518,111		$	607,655		$	553,524
Ratio of non‑performing loans held-for-      investment to loans held-for-investment	6.11		%	6.94		%	6.39		%
Ratio of non-performing assets to total assets (bank)	3.67		%	4.43		%	4.26		%

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
March 31, 2012
Consumer loans (1)	$	67,719	$	39,133	$	314,232	$	421,084	$	4,812,896
Commercial loans (1)	11,133		8,802		92,351		112,286		1,846,642
Total loans	$	78,852	$	47,935	$	406,583	$	533,370	$	6,659,538
December 31, 2011
Consumer loans (1)	$	83,670	$	41,602	$	387,362	$	512,634	$	5,352,230
Commercial loans (1)	7,464		12,385		101,005		120,854		1,686,357
Total loans	$	91,134	$	53,987	$	488,367	$	633,488	$	7,038,587
March 31, 2011
Consumer loans (1)	$	88,580	$	47,848	$	217,249	$	353,677	$	4,560,013
Commercial loans (1)	5,552		8,189		150,903		164,644		1,204,662
Total loans	$	94,132	$	56,037	$	368,152	$	518,321	$	5,764,675

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

14

Gain on Loan Sales and Securitizations

(Dollars in thousands)

(Unaudited)

	For the Three Months Ended
	March 31, 2012					December 31, 2011					March 31, 2011
Description	(000's)			bps		(000's)			bps		(000's)			bps
Valuation (loss) gain:
Value of interest rate locks	$	(2,700	)	(2	)	$	(19,033	)	(18	)	$	(616	)	(1	)
Value of forward sales	43,810			40		17,793			17		(41,361		)	(69	)
Fair value of loans held-for-sale	121,066			112		96,911			92		44,322			76
LOCOM adjustments on loans held-for-investment	(21		)	—		—			—		(30		)	—
Total valuation gains	162,155			150		95,671			91		2,315			6
Sales gains (losses):
Marketing gains, net of adjustments	131,512			121		73,560			70		751			1
Pair-off (losses) gains	(83,763		)	(77	)	(58,831		)	(56	)	48,458			83
Provision for representation and warranty reserve	(5,051		)	(5	)	(3,481		)	(3	)	(2,339		)	(4	)
Total sales gains	42,698			39		11,248			11		46,870			80
Total gain on loan sales and securitizations	$	204,853		189		$	106,919		102		$	49,185		86
Total loan sales and securitizations	$	10,829,798				$	10,476,542				$	5,829,508

15

Average Balances, Yields and Rates

(Dollars in thousands)

(Unaudited)

	For the Three Months Ended
	March 31, 2012				December 31, 2011				March 31, 2011
	Average Balance		Annualized Yield/Rate		Average Balance		Annualized Yield/Rate		Average Balance		Annualized Yield/Rate
Interest-Earning Assets:
Loans held-for-sale	$	2,393,725	4.05	%	$	2,468,813	3.94	%	$	1,683,814	4.44	%
Loans repurchased with      government guarantees	2,022,338		3.38	%	1,849,827		3.44	%	1,745,391		2.93	%
Loans held-for-investment:
Consumer loans (1)	4,990,827		4.33	%	5,288,088		4.37	%	4,615,688		4.83	%
Commercial loans (1)	1,755,917		4.21	%	1,620,132		4.53	%	1,228,478		4.85	%
Loans held-for-investment	6,746,744		4.30	%	6,908,220		4.40	%	5,844,166		4.84	%
Securities classified as available-for-sale      or trading	786,275		4.36	%	813,865		4.39	%	629,444		5.15	%
Interest-earning deposits and other	691,586		0.24	%	712,242		0.24	%	1,570,231		0.25	%
Total interest-earning assets	12,640,668		3.89	%	12,752,967		3.94	%	11,473,046		3.88	%
Other assets	1,566,508				1,401,566				1,665,367
Total assets	$	14,207,176			$	14,154,533			$	13,138,413
Interest-Bearing Liabilities:
Demand deposits	$	346,542	0.26	%	$	382,419	0.29	%	$	398,360	0.39	%
Savings deposits	1,610,197		0.83	%	1,432,094		0.81	%	1,075,253		0.90	%
Money market deposits	486,907		0.54	%	531,981		0.61	%	555,983		0.78	%
Certificate of deposits	3,084,884		1.35	%	3,010,919		1.52	%	3,185,614		1.93	%
Total retail deposits	5,528,530		1.06	%	5,357,413		1.15	%	5,215,210		1.48	%
Demand deposits	98,724		0.49	%	82,278		0.52	%	77,747		0.54	%
Savings deposits	270,601		0.57	%	379,959		0.60	%	357,122		0.65	%
Certificate of deposits	392,656		0.66	%	407,386		0.60	%	251,646		0.69	%
Total government deposits	761,981		0.61	%	869,623		0.60	%	686,515		0.65	%
Wholesale deposits	357,532		3.74	%	464,104		3.47	%	841,073		3.34	%
Total deposits	6,648,043		1.15	%	6,691,140		1.24	%	6,742,798		1.63	%
FHLB advances	4,097,630		2.69	%	4,078,476		2.69	%	3,469,055		3.50	%
Other	248,585		2.88	%	248,585		2.70	%	248,610		2.62	%
Total interest-bearing liabilities	10,994,258		1.76	%	11,018,201		1.81	%	10,460,463		2.27	%
Other liabilities	2,076,300				2,001,616				1,432,721
Stockholder's equity	1,136,618				1,134,716				1,245,229
Total liabilities and stockholder's equity	$	14,207,176			$	14,154,533			$	13,138,413

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

16

Non-GAAP Reconciliation

(Dollars in thousands)

(Unaudited)

	For the Three Months Ended
	March 31, 2012			December 31, 2011			March 31, 2011
Pre-tax, pre-credit-cost revenue
Loss before tax provision	$	(7,309	)	$	(74,901	)	$	(26,700	)
Add back:
Provision for loan losses	114,673			63,548			28,309
Asset resolution	36,770			32,408			38,110
Other than temporary impairment on AFS investments	1,175			7,132			—
Representation and warranty repurchase reserve - change in estimate	60,538			69,279			20,427
Write down of residual interest	409			847			2,381
Total credit-related-costs:	213,565			173,214			89,227
Pre-tax, pre-credit-cost revenue	$	206,256		$	98,313		$	62,527
Efficiency ratio (credit-adjusted)
Net interest income (a)	$	74,733		$	75,863		$	52,573
Non-interest income (b)	221,377			118,621			96,266
Add: Representation and warranty repurchase reserve - change in estimate (d)	60,538			69,279			20,427
Adjusted revenue	356,648			263,763			169,266
Non-interest expense (c)	188,746			205,837			147,230
Less: Asset resolution expense (e)	(36,770		)	(32,408		)	(38,110		)
Adjusted non-interest expense	$	151,976		$	173,429		$	109,120
Efficiency ratio (c/(a+b))	63.7		%	105.8		%	98.8		%
Efficiency ratio (credit-adjusted) ((c-e)/((a+b)+d)))	42.6		%	65.8		%	64.5		%

	March 31, 2012			December 31, 2011			March 31, 2011
Non-performing assets / Tier 1 capital + allowance for      loan losses
Non-performing assets	$	515,269		$	603,082		$	546,926
Tier 1 capital	$	1,207,237		$	1,215,220		$	1,278,258
Allowance for loan losses	281,000			318,000			271,000
Tier 1 capital + allowance for loan losses	$	1,488,237		$	1,533,220		$	1,549,258
Non-performing assets / Tier 1 capital + allowance for loan losses	34.6		%	39.3		%	35.3		%
Tier 1 common
Tier 1 capital	$	1,207,237		$	1,215,220		$	1,278,258
Adjustments
Preferred stock	(266,657		)	(266,657		)	(266,657		)
Qualifying trust preferred securities	(240,000		)	(240,000		)	(240,000		)
Tier 1 common	700,580			708,563			771,601
Total risk-weighted assets (1)	$	8,168,050		$	7,905,062		$	6,644,851
Tier 1 common ratio	8.58		%	8.96		%	11.61		%

(1) Under the regulatory guidelines for risk-based capital, on-balance sheet assets and credit equivalent amounts of derivatives and off-balance sheet items are assigned to one of several broad risk categories according to the obligor or, if relevant, the guarantor or the nature of any collateral. The aggregate dollar amount in each risk category is then multiplied by the risk weight associated with that category. The resulting weighted values from each of the risk categories are aggregated for determining total risk-weighted assets.

17

EX-99.2

Earnings Presentation First Quarter 2012 May 1, 2012 Presenters: Joseph P. Campanelli Chief Executive Officer Paul D. Borja Chief Financial Officer

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

3 First Quarter 2012 Highlights  Net loss to common stockholders of $(8.7) million, or $(0.02) per share • $206.3 million, or $0.36 per share, in pre-tax, pre-credit-cost income, increase of 109.8% from prior quarter • Gain on loan sale income increased by 91.6% from prior quarter to $204.9 million, or 189 bps • Net servicing revenue of $32.9 million and loan fees and charges of $30.0, both increased from prior quarter • Quarterly bank net interest margin remained stable at 2.41% • Retail core deposits increased by 14.0% from prior quarter and cost of funds declined by 5 basis points from prior quarter • Commercial loans continue to grow, consistent with business plan  Remained well-capitalized with significant liquidity • Tier 1 capital ratio of 8.64% • Cash and cash equivalents of $757.9 million, in addition to $270 million in unencumbered marketable securities and approximately $670 million in unused capacity at FHLB  Continued emphasis on credit risk management, primarily associated with loans originated prior to 2009 • Transitioned to more robust and segmented loss models, consistent with OCC peers • Non-performing loans HFI decreased by 16.7% from prior quarter • Allowance coverage ratio increased to 69.1%, compared to 65.1% in prior quarter

4 Summary Financial Results [1] Net servicing revenue includes net loan administration income and net gain (loss) on trading securities. [2] See Non-GAAP reconciliation on pages 33 – 34. ($ in millions, except per share data) Q1 2012 Q4 2011 Q1 2011 Net Interest Income $74.7 $75.9 $52.6 Provision $114.7 $63.5 $28.3 Gain on Loan Sale $204.9 $106.9 $50.2 Net Servicing Revenue [1] $32.9 $29.0 $39.3 Net Loss Applicable to Common Shareholders ($8.7) ($78.2) ($31.7) Diluted Earnings / (Loss) per Share ($0.02) ($0.14) ($0.06) Total Assets $14,042.3 $13,637.5 $13,017.0 Total Stockholders' Equity $1,087.4 $1,079.7 $1,237.0 Book Value per Common Share $1.49 $1.48 $1.78 NPLs / Gross Loans HFI 6.11% 6.94% 6.39% NPAs / Total Assets (Bank) 3.67% 4.43% 4.26% ALLL / NPLs 69.11% 65.11% 73.61% ALLL / Gross Loans HFI 4.22% 4.52% 4.70% NPAs / Tier 1 Capital + Allowance for Loan Losses [2] 34.62% 39.33% 35.30% Tier 1 Capital Ratio 8.64% 8.95% 9.87% Total Risk Based Capital Ratio 16.06% 16.64% 20.51% Tier 1 Common to Risk Weighted Assets 8.58% 8.96% 11.61% Total Equity / Total Assets 7.74% 7.92% 9.50%

5 Pre-tax, Pre-credit-cost Revenue -- Pre-tax, pre-credit-cost revenue of $206.3 million, an increase of 109.8 % over prior quarter and 229.9% over prior year… Note: See Non-GAAP reconciliation on pages 33 - 34. ($ in millions) $41.8 $62.8 $95.4 $89.7 $62.5 $41.0 $102.5 $98.3 $206.3 $- $50 $100 $150 $200 $250 Q1 2010 Q2 2010 Q3 2010 Q4 2010 Q1 2011 Q2 2011 Q3 2011 Q4 2011 Q1 2012 Pre tax, pre credit-cost revenue

$28.3 $48.4 $36.7 $63.5 $114.7 $38.1 $23.3 $34.5 $32.4 $36.8 $20.4 $21.4 $39.0 $69.3 $60.5 $0 $50 $100 $150 $200 $250 Q1 2011 Q2 2011 Q3 2011 Q4 2011 Q1 2012 Provision for loan losses Asset resolution Representation and warranty reserve – change in estimate 6 Primary Credit Related Costs -- Credit related costs increased from the prior quarter, driven primarily by increases in the provision for loan losses and provisions related to the representation and warranty reserve… ($ in millions)

7 Gain on Loan Sales -- Gain on loan sale income, and margin, improved to historically high levels, driven by the strength of the mortgage banking business… ($ in millions) $64.3 $103.2 $76.9 $50.2 $39.8 $103.9 $106.9 $204.9 1.22% 1.35% 0.89% 0.86% 0.91% 1.53% 1.02% 1.89% 0.00% 0.50% 1.00% 1.50% 2.00% 2.50% 3.00% 3.50% 4.00% 4.50% 5.00% $0 $50 $100 $150 $200 Q2 2010 Q3 2010 Q4 2010 Q1 2011 Q2 2011 Q3 2011 Q4 2011 Q1 2012 Net Gain on Loan Sales Gain on Loan Sale Margin

$1,680 $1,702 $2,347 $2,539 $2,148 $2,189 $7,484 $3,154 $2,295 $4,388 $8,039 $8,981 $- $2,000 $4,000 $6,000 $8,000 $10,000 $12,000 Q4 2010 Q1 2011 Q2 2011 Q3 2011 Q4 2011 Q1 2012 Purchase Originations Refinance Originations 8 Residential Mortgage Originations -- Residential first mortgage originations increased by $0.9 billion from the prior quarter, driven by strong refinance volume… ($ in millions)

$1,500 $2,500 $3,500 $4,500 $5,500 $6,500 $7,500 2007 2008 2009 2010 2011 2012 9 Historical Monthly Lock Volume Note: Residential mortgage volume. ($ in millions) -- Residential mortgage rate locks continued to be strong, reflecting the interest rate environment and increased refinancing activity…

$28.1 $39.3 $30.6 $16.9 $29.0 $32.9 $0 $5 $10 $15 $20 $25 $30 $35 $40 $45 Q4 2010 Q1 2011 Q2 2011 Q3 2011 Q4 2011 Q1 2012 Net Servicing Revenue 10 Net Servicing Revenue -- Mortgage servicing rights portfolio, net of hedges, continues to generate substantial revenues… Note: Net servicing revenue includes net loan administration income and net gain (loss) on trading securities. ($ in millions)

11 Bank Net Interest Income and Margin ($ in millions) -- Bank net interest income and margin remained stable from the prior quarter… $54.2 $52.9 $67.2 $77.5 $76.5 1.87% 1.86% 2.30% 2.43% 2.41% 0.00% 0.50% 1.00% 1.50% 2.00% 2.50% 3.00% 3.50% 4.00% 4.50% 5.00% $0 $10 $20 $30 $40 $50 $60 $70 $80 $90 Q1 2011 Q2 2011 Q3 2011 Q4 2011 Q1 2012 Net Interest Income before Provision Net Interest Margin (Bank)

12 Commercial Non RE Portfolio -- Commercial non-real estate loan balances continue to grow prudently, consistent with the business plan… $34.5 $131.1 $276.7 $443.4 $688.7 $- $100 $200 $300 $400 $500 $600 $700 $800 Q1 2011 Q2 2011 Q3 2011 Q4 2011 Q1 2012 Commercial Non Real Estate Growth ($ in millions)

13 Commercial RE Portfolio As of Mar 31, 2012 Note: “ Legacy CRE” consists loans originated prior to 2011, including those refinanced during 2009 and 2010, while “New CRE” consists of loans originated during 2011 and 2012. -- The “new” commercial real estate loan portfolio continues to grow, while the seasoned portfolio continues to run-off…

14 Cost of Funds -- Average cost of funds continues to improve… ($ in millions) $40.3 $31.0 $27.0 $24.9 $22.7 $20.9 $19.0 $39.8 $31.2 $30.0 $30.2 $30.1 $27.6 $27.4 $2.0 $1.7 $1.6 $1.6 $1.6 $1.7 $1.8 2.86% 2.31% 2.27% 2.21% 2.09% 1.81% 1.76% 0.00% 1.00% 2.00% 3.00% 4.00% 5.00% 6.00% 7.00% 8.00% $0 $10 $20 $30 $40 $50 $60 $70 $80 $90 $100 Q3 2010 Q4 2010 Q1 2011 Q2 2011 Q3 2011 Q4 2011 Q1 2012 Deposit Interest Expense FHLB Interest Expense Other Interest Expense Average Funding Cost

15 Retail Core Deposits -- Retail core deposits increased significantly, both in total and as a percentage, from the prior quarter… Note: Retail core deposits include checking accounts, savings accounts, and money market accounts. ($ in millions) $2,153 $2,304 $2,447 $2,514 $2,521 $2,873 40.0% 41.9% 47.0% 45.7% 45.9% 47.9% 0.00% 10.00% 20.00% 30.00% 40.00% 50.00% 60.00% 70.00% $0 $500 $1,000 $1,500 $2,000 $2,500 $3,000 Q4 2010 Q1 2011 Q2 2011 Q3 2011 Q4 2011 Q1 2012 Retail Core Retail Core / Retail Deposits

16 Regulatory Capital Ratios -- Remained well-capitalized at March 31, 2012…

17 Asset Quality (1) Consumer loans include: residential first mortgage, second mortgage, construction, warehouse lending, HELOC, and other consumer loans. Commercial loans include: commercial real estate, commercial and industrial, and commercial lease financing loans. (2) Includes non-performing loans available-for-sale. Totals may not foot due to rounding $ in millions Q1 2012 Q4 2011 Q3 2011 Consumer (1) $67.7 $83.7 $91.3 Commercial (1) $11.1 $7.5 $13.7 Total 30 Day Delinquent Loans $78.8 $91.1 $105.0 Consumer (1) $39.1 $41.6 $46.0 Commercial (1) $8.8 $12.4 $10.5 Total 60 Day Delinquent Loans $47.9 $54.0 $56.5 Consumer (1) $314.2 $387.4 $352.4 Commercial (1) $92.4 $101.0 $92.5 Total90+ Day Delinquent Loans $406.6 $488.4 $444.9 Non-performing Assets (2) $518.1 $607.7 $561.6 To Total Assets (Bank only) 3.67% 4.43% 4.09% Provision for Loan Losses $114.7 $63.6 $36.7 Charge-offs, Net of Recoveries $151.7 $27.5 $28.7 Allowance for Loan Losses $281.0 $318.0 $282.0 To Loans Held for Investment 4.22% 4.52% 4.13% To Non-performing Loans 69.1% 65.1% 63.4% Real Estate Owned $108.7 $114.7 $113.4

18 HFI Delinquent Loan Trends -- Total HFI delinquent loan trends improved significantly from the prior quarter… $0.0 $100.0 $200.0 $300.0 $400.0 $500.0 $600.0 30-60 days past due 60-90 days past due 90+ days past due ($ in millions) $0.0 $10.0 $20.0 $30.0 $40.0 $50.0 $60.0 $70.0 $80.0 $90.0 $100.0 30 - 60 Days Past Due Residential Commercial / Other ($ in millions) $0.0 $5.0 $10.0 $15.0 $20.0 $25.0 $30.0 $35.0 $40.0 $45.0 $50.0 60 - 90 ays Past Due Residential Commercial / Other ($ in millions) $0.0 $50.0 $100.0 $150.0 $200.0 $250.0 $300.0 $350.0 $400.0 90+ Days Past Due Residential Commercial / Other ($ in millions)

19 Allowance for Loan Losses -- Allowance for loan losses increased as a percentage of non-performing loans from the prior quarter… ($ in millions) $538 $530 $474 $274 $271 $274 $282 $318 $281 47.4% 52.3% 52.0% 86.1% 73.6% 67.9% 63.4% 65.1% 69.1% 20.0% 40.0% 60.0% 80.0% 100.0% 120.0% 140.0% 160.0% $0 $100 $200 $300 $400 $500 $600 Allowance for Loan Losses ALLL / Non-performing Loans

20 Representation and Warranty Reserve ($ in millions) 1Q11 2Q11 3Q11 4Q11 1Q12 2005 & Prior $12 $21 $12 $13 $18 2006 24 30 31 32 28 2007 83 84 99 86 94 2008 53 40 45 45 63 2009-2011 34 19 22 14 36* Total $206 $194 $209 $190 $239 * Increase is driven largely by Freddie requests for documentation on more recent originations, vast majority of which the Bank expects to resolve without incurring a loss Pending demands also increased slightly in 1Q12; primarily FNMA loans ($ in millions) 1Q11 2Q11 3Q11 4Q11 1Q12 Period –end Balance $304 $326 $352 $343 $357 % Non-Agency (approx) 3% 2% 2% 2% 2% Key reserve variables UPB Metric (2005-2011 Vintages) (1) Amount Sold UPB $175 (B) Remaining UPB (2) $75 (B) Loan File Review as % of UPB 5% Repurchase Demand Rate 21% Actual Repurchase Rate (Win/Loss) (Weighted Avg.) 44% Loss Severity Rate (Weighted Avg.) 36% Ending Reserve Balance $142 (M) 1Q 12 charge-offs remain high; reserve increased ($ in millions) 1Q11 2Q11 3Q11 4Q11 1Q12 Beg Balance $79 $79 $79 $85 $120 Additions 23 23 41 73 66 Charge-offs (23) (23) (35) (38) (44) End Balance $79 $79 $85 $120 $142 (1) Includes estimates (2) Includes servicing sold with recourse Demands increased in 1Q12

Appendix

22 Full Income Statement Totals may not foot due to rounding ($ in millions, except per share data) Q1 2012 Q4 2011 Q1 2011 Net Interest Income $74.7 $75.9 $52.6 Provision for Loan Losses 114.7 63.5 28.3 Net Interest Income after Provision (39.9) 12.3 24.3 Non-interest Income 221.4 118.6 96.3 Non-interest Expense 188.7 205.8 147.2 Net Earnings (before tax provision) (7.3) (74.9) (26.7) Provision for Income Taxes 0.0 0.3 0.3 Net Earnings (before preferred dividends) (7.3) (75.2) (27.0) Preferred Dividends (1.4) (3.0) (4.7) Net Earnings ($8.7) ($78.2) ($31.7) Weighted average common shares outstanding 556.6 555.4 553.6 Diluted Loss per Share ($0.02) ($0.14) ($0.06)

23 Select Balance Sheet Items Totals may not foot due to rounding ($ in millions) Q1 2012 Q4 2011 Q1 2011 Total assets $14,042.3 $13,637.5 $13,017.0 Cash and interest earning deposits $757.9 $731.1 $1,715.0 First mortgage and construction loans 3,304.9 3,749.8 3,755.0 Second mortgage loans 132.5 138.9 165.2 Commercial real estate loans 1,157.9 1,243.0 1,170.2 Warehouse loans 1,104.2 1,173.9 303.8 Consumer lending (including HELOC and other) 271.3 289.6 336.0 Commercial and Industrial 688.7 443.4 34.5 Investment loan portfolio $6,659.5 $7,038.6 $5,764.7 Loans held for sale $2,492.9 $1,800.9 $1,609.5 Loans repurchased with government guarantees 2,003.0 1,899.3 1,756.5 Securities classified as trading 307.4 313.4 160.7 Securities classified as available for sale 448.1 481.4 452.4 Mortgage servicing rights 596.8 510.5 635.1

24 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 ($ in millions) Balance Rate Balance Rate Balance Rate Retail Deposits: Demand deposits 648$ 0.17% 567$ 0.17% 613$ 0.25% Savings deposits 1,757 0.79% 1,462 0.87% 1,127 0.86% Money market deposits 468 0.47% 492 0.59% 564 0.75% Certificates of deposit 3,120 1.29% 2,972 1.39% 3,189 1.83% Total retail deposits 5,993 0.96% 5,493 1.05% 5,493 1.35% Core retail deposits / retail deposits 47.94% 45.89% 41.94% Government Banking Deposits: Demand deposits 93 0.41% 103 0.44% 91 0.45% Savings deposits 312 0.56% 206 0.60% 423 0.65% Certificates of deposit 375 0.63% 402 0.66% 239 0.85% Total government banking deposits 780 0.57% 711 0.61% 753 0.69% Company controlled deposits 1,480 0.00% 1,101 0.00% 690 0.00% Wholesale deposits 346 3.49% 385 3.45% 812 3.05% Total deposits $ 8,599 0.86% $ 7,690 0.98% $ 7,749 1.34% Number of banking branches As of Mar 31, 2012 As of Dec 31, 2011 As of Mar 31, 2011 113 113 162

25 (1) 90+ day delinquent loans include performing non-accruals. Totals may not foot due to rounding As of Mar 31, 2012 Commercial RE Portfolio Note: “ Legacy CRE” consists of loans originated prior to 2011, including those refinanced during 2009 and 2010., while “New CRE” consists of loans originated during 2011 and 2012.

26 Commercial RE Portfolio – by State As of Mar 31, 2012 Note: Reflects unpaid principal balance of underlying loans before accounting adjustments for discounts and other items. Also excludes commercial letters of credit. Totals may not foot due to rounding State Construction - One to Four Family Land Services Commercial and Industrial Loans One to Four Family Conventional One to Four Family Closed End Mortgage Multi Family Conventional Commercial Non-Owner Occupied Secured by Nonfarm, Nonresidential Other Total MI $3,460 $9,549 $0 $0 $13,618 $496 $92,043 $344,817 $51,042 $998 $516,022 NY - - - - - - 100,000 27,567 14,741 9,500 151,808 CA 135 - - - - - - 122,758 9,309 - 132,203 GA - - - - - - 2,720 76,212 13,388 - 92,319 MA - - - - - - 19,157 26,346 3,684 - 49,187 IN 299 13,879 - - - - - 33,161 1,156 - 48,494 VA - - - - - - - 43,964 - - 43,964 CT - - - 3,316 - - - 38,475 - - 41,791 MD - - - - - - - 2,868 - 9,919 12,787 FL - 4,097 - - - - - 8,385 - - 12,481 PA - - - - - - 9,968 - - - 9,968 TN - - - - - - - 5,619 1,277 - 6,896 NC - - - - - - - 7,009 552 - 7,561 IL - - - - - - - 1,484 4,216 - 5,700 RI - - - - - - 924 3,615 - - 4,539 Other 1,831 - - - 544 - 1,715 22,613 858 27,562 Total $5,725 $27,524 $0 $3,316 $14,162 $496 $226,528 $764,892 $100,223 $20,417 $1,163,282 $ in thousands

27 Commercial RE Portfolio – by Vintage As of Mar 31, 2012 Note: Reflects unpaid principal balance of underlying loans before accounting adjustments for discounts and other items. Also excludes commercial letters of credit. Totals may not foot due to rounding Vintage Construction - One to Four Family Land Services Commercial and Industrial Loans One to Four Family Conventional One to Four Family Closed End Mortgage Multi Family Conventional Commercial Non-Owner Occupied Secured by Nonfarm, Nonresidential Other Total Older $0 $81 $0 $0 $1,606 $0 $9,567 $48,479 $5,199 $0 $64,932 2003 51 460 - - - - 4,598 38,990 5,159 - 49,259 2004 3,153 - - - 335 13 9,379 70,865 5,646 - 89,391 2005 256 406 - - 8,379 - 16,222 51,667 3,539 - 80,469 2006 299 16,665 - - 42 160 29,803 118,371 10,617 - 175,957 2007 173 6,469 - - 932 - 17,894 158,854 31,660 - 215,982 2008 - - - - 321 - 3,817 129,128 11,154 - 144,421 2009 - 66 - - 179 308 483 11,065 - - 12,101 2010 1,793 - - - 1,911 - 5,638 15,216 - - 24,559 2011 - 3,377 - - - 14 129,125 120,412 23,013 19,419 295,360 2012 - - - 3,316 457 - - 1,845 4,236 998 10,853 Total 5,725 27,524 - 3,316 14,162 496 226,527 764,892 100,223 20,417 1,163,282 $ in thousands

28 Non-Agency Investment Securities AFS Portfolio As of Mar 31, 2012 Note: excludes agency investment securities, which are sold in normal course. Totals may not foot due to rounding Investment Name CUSIP Current Principal OTTI Impairment Mark-to- Market Net Book Value M SP F M SP F CWALT 2006-45T1 2A5 02149JAU0 $26,062 ($6,601) ($1,116) $18,345 Aaa AAA AAA Caa3 CCC C CWHL 2007-3 A1 12543RAA7 27,244 (3,505) (467) 23,272 NR AAA AAA NR CCC C CWHL 2006-18 1A1 12543WAA6 21,238 (1,934) (478) 18,826 NR AAA AAA NR CC C CWHL 2005-23-A1 126694GU6 27,896 (1,860) (177) 25,859 NR AAA AAA NR CCC B CWHL 2006-1 A2 126694XC7 23,399 (3,061) (1,007) 19,330 NR AAA AAA NR CC C CWHL 2007-J1 1A1 12669MAA6 45,114 (6,434) (3,022) 35,659 NR AAA AAA NR D D CWALT TR 2006-J8 23245LAD2 26,756 (9,594) (726) 16,435 NR AAA AAA NR D D CWALT 2007-1T1 1A1 23246KAA9 31,111 (10,165) (1,379) 19,567 Aaa AAA AAA Ca D D GSR 2006-9F 2A1 3622X7AD8 21,757 (1,555) (347) 19,854 Aaa NR AAA Caa1 NR C GSR 2006-7F 2A1 36298NAD6 - - - - Aaa NR AAA Caa1 NR C JPMMT 2006-S4 A7 46629SAG7 45,817 (6,495) (1,333) 37,989 Aaa AAA AAA Caa2 D D Subtotal $296,394 ($51,205) ($10,053) $235,136 GMS Trust 2006-1 33848FAA1 $120,064 ($2,793) ($12,238) $105,034 Aaa AAA NR B3 AAA NR Subtotal $120,064 ($2,793) ($12,238) $105,034 Total $416,458 ($53,998) ($22,291) $340,170 Initial Current $ in thousands

29 Real Estate Owned Portfolio As of Mar 31, 2012 Totals may not foot due to rounding $ in thousands Commercial % Receivership % Construction % Manufactured Homes % Single Family Homes % Total % Current Month 432$ 1.9% -$ 0.0% -$ 0.0% -$ 0.0% 5,239$ 9.5% 5,671$ 5.2% 30 days 1,351 6.1% 8,247 42.0% - 0.0% - 0.0% 6,685 12.1% 16,283 15.0% 60 days 1,116 5.0% - 0.0% - 0.0% 148 52.0% 6,599 11.9% 7,864 7.2% 90 days 221 1.0% 408 2.1% - 0.0% - 0.0% 5,999 10.9% 6,628 6.1% 91 - 180 days 4,423 19.8% 2,018 10.3% - 0.0% 45 15.9% 11,004 19.9% 17,490 16.1% 181 - 365 days 1,591 7.1% 4,930 25.1% 457 91.3% 38 13.4% 12,786 23.1% 19,802 18.2% 1 - 2 years 8,289 37.1% 4,021 20.5% - 0.0% 33 11.6% 5,617 10.2% 17,960 16.5% 2 - 3 years 1,778 8.0% - 0.0% - 0.0% - 0.0% 1,009 1.8% 2,787 2.6% 3 - 4 years 3,121 14.0% - 0.0% 43 8.7% 20 7.0% 297 0.5% 3,481 3.2% 4 - 5 years - 0.0% - 0.0% - 0.0% - 0.0% - 0.0% - 0.0% Reconciling Items - 0.0% - 0.0% - 0.0% - 0.0% - 0.0% - 0.0% Loans to Facilitate - 0.0% - 0.0% - 0.0% - 0.0% - 0.0% 10,721 9.9% Total 22,321$ 100.0% 19,624$ 100.0% 500$ 100.0% 285$ 100.0% 55,235$ 100.0% 108,686$ 100.0%

30 Asset Quality by Loan Type – HFI As of Mar 31, 2012 Note: Non-performing loans include 90+ days delinquent and matured, and performing non-accruals. Totals may not foot due to rounding Loan Type Balance Non-performing Loans % of Balance % of Overall NPLs Q1 '12 Charge Offs, Net of Recoveries Collectively Evaluated Reserves (1) Individually Evaluated Reserves (2) Total Reserves Residential first mortgage $3,304,393 $302,087 9.14% 74.30% $94,640 $73,092 $85,569 $158,661 Second mortgage 132,463 5,993 4.52% 1.47% 5,034 15,724 3,343 19,067 Construction 496 374 75.40% 0.09% 243 - - - Warehouse 1,104,205 28 0.00% 0.01% - 1,824 - 1,824 HELOC 209,228 5,316 2.54% 1.31% 6,162 14,760 18 14,778 Consumer 62,111 433 0.70% 0.11% 977 2,593 - 2,593 Commercial RE 1,157,911 92,247 7.97% 22.69% 44,617 52,410 19,060 71,470 Commercial NRE 688,731 105 0.02% 0.03% - 12,607 - 12,607 Total: $6,659,538 $406,583 6.11% 100.00% $151,673 $173,010 $107,990 $281,000 (1) Represents loans collectively evaluated for impairment in accordance with ASC 450-20, Loss Contingencies (formerly FAS 5), and pursuant to amendments by ASU 2010-20 regarding allowance for unimpaired loans (2) Represents loans individually evaluated for impairment in accordance with ASC 310-10, Receivables (formerly FAS 114), and pursuant to amendments by ASU 2010-20 regarding allowance for impaired loans. $ in thousands

31 Non Performing Loans HFI – by State As of Mar 31, 2012 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. State Mortgage Percent of Mortgage Second Mortgage HELOC Commercial Real Estate Commercial Construction Consumer Warehouse Total Percent of Total CA $81,849 31.2% $1,365 $600 $7,025 - - - - $90,839 24.8% MI 16,530 6.3% 734 1,449 48,962 105 304 248 - 68,332 18.6% FL 36,950 14.1% 465 531 3,644 - - - - 41,589 11.3% GA 7,602 2.9% 313 10 16,348 - - 25 - 24,299 6.6% AZ 11,449 4.4% 478 248 - - - - - 12,176 3.3% TX 9,033 3.4% 31 - 2,052 - - 1 - 11,117 3.0% NY 9,002 3.4% 398 125 852 - - 5 - 10,382 2.8% MD 9,472 3.6% - 62 - - - - - 9,534 2.6% OH 5,813 2.2% 57 51 2,643 - - - - 8,564 2.3% WA 7,635 2.9% 335 157 - - - - - 8,128 2.2% NV 6,719 2.6% - 67 - - - - - 6,786 1.9% IL 6,095 2.3% 12 171 - - - - - 6,278 1.7% IN 1,846 0.7% - 22 4,285 - 70 32 - 6,255 1.7% NJ 5,896 2.2% 173 80 - - - - - 6,149 1.7% VA 4,623 1.8% 104 - - - - 68 - 4,795 1.3% Other 41,661 15.9% 1,528 1,742 6,436 - - 56 - 51,422 14.0% Total $262,176 100.0% $5,993 $5,316 $92,247 $105 $374 $434 $0 $366,644 100.0% $ in thousands

32 Non Performing Loans HFI – by Vintage As of Mar 31, 2012 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. Vintage Mortgage Percent of Mortgage Second Mortgage HELOC Commercial Real Estate Commercial Construction Consumer Warehouse Total Percent of Total Older $16,811 6.4% $226 $1,186 $11,185 $35 $70 $15 - $29,527 8.1% 2004 24,053 9.2% 459 281 7,977 - - 31 - 32,801 8.9% 2005 32,825 12.5% 214 358 7,996 6 - 90 - 41,489 11.3% 2006 26,359 10.1% 694 284 28,845 - - 31 - 56,214 15.3% 2007 110,619 42.2% 4,241 2,738 19,320 - - 64 - 136,982 37.4% 2008 32,350 12.3% 159 469 11,214 10 304 135 - 44,640 12.2% 2009 16,706 6.4% - - 1,202 - - 2 - 17,910 4.9% 2010 1,611 0.6% - - 1,978 9 - 35 - 3,633 1.0% 2011 843 0.3% - - 2,529 45 - 30 - 3,447 0.9% 2012 - 0.0% - - - - - - - - 0.0% Total $262,176 100.0% $5,993 $5,316 $92,247 $105 $374 $434 $0 $366,644 100% $ in thousands

33 Non-GAAP Reconciliation Totals may not foot due to rounding $ in millions Q1 2012 Q4 2011 Q3 2011 Q2 2011 Q1 2011 Q4 2010 Q3 2010 Q2 2010 Q1 2010 Loss before tax provision and dividends ($7.3) ($74.9) ($9.2) ($69.9) ($26.7) ($185.3) ($17.9) ($92.3) ($77.2) Add back: Provision for loan losses 114.7 63.5 36.7 48.4 28.3 225.4 51.4 86.0 63.6 Asset resolution 36.8 32.4 34.5 23.3 38.1 41.8 44.3 52.6 22.7 Other than temporary impairment on investments AFS 1.2 7.1 1.3 15.6 0.0 1.3 0.0 0.4 3.3 Representation and warranty reserve 60.5 69.3 39.0 21.4 20.4 10.3 13.0 11.4 26.8 Write down of residual interest 0.4 0.8 0.2 2.3 2.4 (3.8) 4.7 4.3 2.7 Reserve increase for reinsurance 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.4 0.0 Total credit related costs: 213.6 173.2 111.7 110.9 89.2 275.0 113.3 155.1 119.1 Pre-tax, pre credit-cost revenue $206.3 $98.3 $102.5 $41.0 $62.5 $89.7 $95.4 $62.8 $41.8

34 Non-GAAP Reconciliation Totals may not foot due to rounding $ in millions 3/31/2012 12/31/2011 3/31/2011 Non performing assets $515.3 $603.1 $546.9 Tier One Capital 1,207.2 1,215.2 1,278.3 Allowance for Loan Losses 281.0 318.0 271.0 Tier One Capital + Allowance for Loan Losses 1,488.2 1,533.2 1,549.3 Nonperforming assets/ Tier One Capital + Allowance for Loan Losses 34.62% 39.34% 35.30% $ in millions 3/31/2012 12/31/2011 3/31/2011 Tier 1 capital $1,207.2 $1,215.2 $1,278.3 Preferred stock (266.7) (266.7) (266.7) Qualifying trust preferred securities (240.0) (240.0) (240.0) Tier 1 common 700.6 708.6 771.6 Total risk-weighted assets 8,168.1 7,905.1 6,644.9 Tier 1 common/ Total risk-weighted assets 8.58% 8.96% 11.61%