Flagstar Bank is an American commercial bank headquartered in Troy, Michigan. A wholly owned subsidiary of New York Community Bank, Flagstar is one of the largest residential mortgage servicers in the United States, and was among the largest banks in the United States prior to its acquisition in 2022.

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Flagstar Bancorp, Inc.

Flagstar Bank headquarters
Industry	Financial services
Founded	Flagstar Bancorp, Inc. - 1993; 31 years ago (1993) (as FSSB Holding Corporation) Flagstar Bank, FSB - 1987; 37 years ago (1987) (as First Security Savings Bank, FSB)
Headquarters	Troy, Michigan , United States
Key people	John D. Lewis (Chairman) Alessandro DiNello (President and CEO)
Revenue	US$1.680 billion[1] (2020)
Operating income	US$704 million[1] (2020)
Net income	US$538 million[1] (2020)
Total assets	US$31.038 billion[1] (2020)
Total equity	US$2.201 billion[1] (2020)
Number of employees	3,938 (2018)
Parent	NYCB (2022–present)
Website	www.flagstar.com
Footnotes / references [2]

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First Security Savings Bank was founded as a federal savings bank in 1987. The chairman of the bank was Thomas J. Hammond. The initial branch focused on funding regional retail and wholesale mortgage operations.^[3] A bank holding company, FSSB Holding Corporation was established in 1993. The following year, the company acquired Security Savings Bank, based in Jackson, Michigan. Two years later in 1996, the company adopted its current name, Flagstar Bank.^[3]

In 1997, the company became a public company via an initial public offering.^[4] It moved its stock listing from the NASDAQ to the New York Stock Exchange in 2001.^[5]

During the financial crisis of 2007-2008, the company raised $1.6 billion in new capital with investments from MP Thrift Investments L.P., the Troubled Asset Relief Program (TARP), and public offerings.^[6] The bank repaid all of the funds it received under TARP in August 2016.^[7]

Flagstar effected 1:10 reverse stock splits in 2010 and 2012 to maintain its New York Stock Exchange listing.^[8]

The U.S. Department of Treasury sold its preferred stock of Flagstar to private investors in 2013.^[9]

In May 2013, Flagstar paid a $110 million settlement to MBIA.^[10][11]

In June 2013, Flagstar reached a $105 million settlement with Assured Guaranty related to its RMBS.^[12][13][14] Flagstar paid a $93.5-million settlement to Fannie Mae in November 2011,^[15][16] and $8.9 million to Freddie Mac regarding its RMBS mortgage repurchase obligations in December 2013.^[17][18][19] In September 2014, Flagstar agreed to pay $37.5 million to the Consumer Financial Protection Bureau.^[20][21]

In 2013, the company sold a $1.3 billion commercial loan portfolio to CIT Group.^[22]

Flagstar Bank was the jersey sponsor of the Detroit Pistons of the National Basketball Association for the 2017-18 NBA Season.^[23]

In March 2018, the bank acquired 8 branches in San Bernardino County, California from Desert Community Bank.^[24] The company also acquired a mortgage warehouse loan portfolio from Santander Bank.^[25]

In December 2018, Flagstar acquired all 52 branches of Wells Fargo in Indiana, Michigan, and Ohio as well as four in Wisconsin.^[26] However, numerous issues plagued Flagstar during the transfer, several of which were caused by its main website experiencing technical glitches.^[27] Flagstar waived fees, added staff and published an email address where customers could send concerns to alleviate issues.^[28] The bank said most issues were resolved by the end of the week.^[29]

In January 2019, the company initiated a dividend.^[30]

On February 24, 2012, the United States Department of Justice filed a complaint in the United States District Court for the Southern District of New York against the bank, alleging that it had improperly approved thousands of residential home mortgage loans for government insurance. In February 2013, a U.S. District court in Manhattan found that the bank had materially breached contracts specifying the quality and characteristics of loans to be packaged into the securities.^[40]