Flagstar Announces Closing of Inaugural RMBS Securitization

TROY, Mich., July 31, 2017 /PRNewswire/ -- Flagstar Bancorp, Inc. (NYSE: FBC) today announced it has closed its securitization of $444 million of residential mortgage-backed certificates (RMBS) issued by Flagstar Mortgage Trust 2017-1 (FSMT 2017-1). The certificates are supported by 668 jumbo prime (75%) and high-balance conforming (25%) loans. The pool comprises loans Flagstar originated through its retail, broker and correspondent channels.

The collateral pool consists of high-quality 30- and 15-year, fully amortizing high balance conforming and jumbo fixed-rate Safe Harbor Qualified Mortgage loans to borrowers with strong credit profiles and low leverage. The pool has a weighted average FICO score of 771 and an original combined loan-to-value ratio of 63.5%. The collateral attributes of the pool are generally consistent with recent prime transactions.

"We believe that the RMBS program offers a more efficient way of selling jumbo mortgages into the market, which should help us competitively," said Alessandro P. DiNello, Flagstar's president and CEO. "This competitive advantage should help us, especially with the recent acquisition of Opes Advisors and our continued efforts to recruit top-tier mortgage loan producers. I expect that over time, and if we're successful, we could expect to expand the RMBS program to other residential mortgage loan products."

About Flagstar

Flagstar Bancorp, Inc. (NYSE: FBC) is a $16.0 billion savings and loan holding company headquartered in Troy, Mich. Flagstar Bank, FSB, provides commercial, small business, and consumer banking services through 99 branches in the state. It also provides home loans through a wholesale network of brokers and correspondents in all 50 states, as well as 85 retail locations in 26 states, representing the combined retail branches of Flagstar and Opes Advisors mortgage division. Flagstar is a leading national originator and servicer of mortgage loans, handling payments and record keeping for $87 billion of home loans representing 402,000 borrowers. For more information, please visit flagstar.com.

Forward-Looking Statements

This communication contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are based on the current beliefs and expectations of Flagstar Bancorp, Inc.'s management and are subject to significant risks and uncertainties. Actual results may differ from those set forth in the forward-looking statements. Factors that could cause the Company's actual results to differ materially from those described in the forward-looking statements can be found in periodic Flagstar reports filed with the U.S. Securities and Exchange Commission, which are available on the Company's website (flagstar.com) and on the Securities and Exchange Commission's website (sec.gov). Other than as required under United States securities laws, Flagstar Bancorp does not undertake to update the forward-looking statements to reflect the impact of circumstances or events that may arise after the date of the forward-looking statements.

For further information

ANALYSTS: David Urban, Senior Vice President, Investor Relations, (248) 312-5970

MEDIA:  Susan Bergesen, Corporate Communications, (248) 312-6237

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SOURCE Flagstar Bancorp, Inc.