Exhibit 99.1

		NEWS RELEASE For more information, contact:
		Paul D. Borja Executive Vice President / CFO (248) 312-2000 FOR IMMEDIATE RELEASE

FLAGSTAR REPORTS 2010 FIRST QUARTER RESULTS

TROY, Mich. (April 28, 2010) — Flagstar Bancorp, Inc. (NYSE:FBC), the holding company for Flagstar Bank FSB, today reported a first quarter 2010 net loss applicable to common stockholders of $81.9 million, or $(0.11) per share (diluted) based on average shares outstanding of 777.0 million, as compared to a net loss of $71.6 million, or $(0.15) per share (diluted) based on average shares outstanding of 317.7 million in the fourth quarter 2009. As of March 31, 2010 there were 1.47 billion shares outstanding. Our net loss was $67.4 million, or $(0.76) per share (diluted), in the first quarter 2009 based on average shares outstanding of 88.2 million.

     Capital

At March 31, 2010, the wholly owned subsidiary Flagstar Bank remained “well-capitalized” for regulatory purposes, with capital ratios of 9.37% for Tier 1 capital and 17.93% for total risk-based capital.

On February 9, 2010, the Company announced that it had completed its previously announced rights offering and raised $300.6 million of capital in connection with the exercise of subscription rights by its stockholders and issued approximately 423.3 million shares of its common stock to participating stockholders.

On March 31, 2010, the Company also announced that it has completed its previously announced registered offering of 575 million shares of common stock, which includes 75 million shares issued pursuant to the underwriters’ over-allotment option, on March 29, 2010. The offering resulted in net

proceeds to the Company of approximately $276.1 million, after deducting underwriting fees and estimated offering expenses.

On April 1, 2010, MP Thrift Investments, L.P., the Company’s majority shareholder, exercised its right to convert $50 million of trust preferred securities into 62.5 million shares of common stock.

Assets

Total assets at March 31, 2010 were $14.3 billion as compared to $14.0 billion at December 31, 2009. The increase reflects an increase in stockholders equity, the proceeds of which were invested in liquid short-term assets.

Operations

For the first quarter 2010, our net loss applicable to common stockholders of $81.9 million reflected the following:

	•		Gain on loan sales decreased to $52.6 million as compared to $96.5 million for the fourth quarter 2009, reflecting both the decrease in interest rate locks on mortgage loans, to $6.1 billion in the first quarter 2010 from $7.9 billion in the fourth quarter 2009, and the decrease in residential mortgage loan sales, to $5.0 billion as compared to $7.1 billion in the fourth quarter of 2009. Margin on loan sales also decreased during the first quarter 2010 to 1.05% from 1.35% during the fourth quarter 2009.
	•		Provision for loan losses decreased to $63.5 million as compared to $95.0 million for the fourth quarter of 2009. Net charge-offs decreased to $49.6 million for first quarter 2010 as compared to $98.9 million for fourth quarter 2009.
	•		Loan fees, resulting from the origination of residential mortgage loans, decreased to $16.3 million in the first quarter 2010 as compared to $27.8 million during the fourth quarter 2009. Loan originations declined to $4.3 billion for the first quarter 2010 as compared to $6.9 billion for fourth quarter 2009.
	•		Net loan administration income reflected a gain of $26.2 million as compared to a gain of $27.4 million for the fourth quarter 2009. The first quarter 2010 and the fourth quarter 2009 gains were partially offset by losses of $3.3 million and $0.5 million, respectively, on trading securities that were issued for economic hedging purposes. The first quarter net gain of $22.9 million, as compared to the fourth quarter 2009 net gain of $26.9 million, included a decrease in the fair value of mortgage servicing rights, arising in part

			from bulk servicing sales of $10.8 billion in underlying loans which were completed during the first quarter.
	•		Non interest expense decreased to $123.3 million as compared to $150.7 million in the fourth quarter 2009. The decrease reflected a decline in compensation expense of $3.6 million as the result of a reduction in salaried employees, a reduction in asset resolution expenses of $10.3 million related largely to foreclosed properties and a decline in general and administrative expenses of $15.1 million.
	•		General and administrative expenses declined $15.1 million in the first quarter 2010 as compared to the fourth quarter of 2009. The decrease included a decline of $2.6 million in outside consulting fees and the absence of a $16.4 million loss on extinguishment of FHLB debt which was recorded in the fourth quarter of 2009. The decreases were offset in part by a change of $5.4 million in the valuation of outstanding warrants as a result of anti-dilution provisions that caused an adjustment to the number and the exercise price following the March 31, 2010 stock offering. Also, there was a $3.0 million increase in reinsurance expenses due to the absence of a $4.6 million gain related to termination of an agreement with one of our captive reinsurance counterparties which was recorded in the fourth quarter of 2009.

Community Banking Operations

     Flagstar Bank had 162 community banking branches at March 31, 2010 as compared to 165 branches at December 31, 2009 and 177 branches at March 31, 2009.

Net Interest Margin

Net interest margin decreased to 1.42% for the first quarter 2010 as compared to 1.67% for the fourth quarter 2009. The decrease from fourth quarter 2009 reflects a $0.9 billion decline in the average balance of earning assets with a 0.41% decline in yields. The decrease in yields is largely due to a 0.30% decline in the yield on the loans available for sale portfolio and was offset in part by an 0.11% decline in funding costs. The decline in funding costs reflects, in part, a 0.27% decline in overall deposit costs, the effect of which was largely mitigated by a $514 million decline in average deposits.

Mortgage Banking Operations

Loan production, substantially comprised of agency eligible residential first mortgage loans, decreased to $4.3 billion for the first quarter 2010, as compared to $6.9 billion in the fourth quarter 2009..

Gain on loan sales margins decreased to 1.05% for the first quarter 2010, as compared to 1.35% for the fourth quarter 2009..

At March 31, 2010, the unpaid principal balances of loans associated with our mortgage servicing rights portfolio totaled $48.3 billion and had a weighted average servicing fee of 33.0 basis points. This was a decrease from $56.5 billion at December 31, 2009 with a weighted average servicing fee of 32.1 basis points and $58.9 billion at March 31, 2009 with an average weighted servicing fee of 33.4 basis points. The unpaid principal balance decreased as the result of two bulk servicing sales, totaling $10.8 billion, during the first quarter 2010.

     Asset Quality

Non-performing assets, which include non-performing loans (i.e., loans 90 days or more past due, and matured loans), real estate owned and repurchased assets, but which exclude any FHA-insured assets, increased to $1.4 billion at March 31, 2010, from $1.3 billion at December 31, 2009 and $1.0 billion at March 31, 2009.

At March 31, 2010, the allowance for loan losses was $538.0 million, which equaled 47.4% of non-performing loans and 7.10% of loans held for investment. At December 31, 2009 and March 31, 2009, the allowance for loan losses were, respectively, $524.0 million (6.79% of loans held for investment) and $466.0 million (5.21% of loans held for investment) and equaled 48.9% and 52.1%, respectively, of non-performing loans.

Of the non-performing loans, residential first mortgage loans increased to $709.4 million at March 31, 2010, as compared to $659.5 million at December 31, 2009 and $561.5 million at March 31, 2009. The increase reflects no growth in the 90-120 day category, a $29.5 million increase in the over 120 — day category, and a $21.0 million increase in matured delinquent loans.

Non-performing commercial real estate mortgages increased to $395.8 million at March 31, 2010 as compared to $385.7 million at December 31, 2009 and $298.2 million at March 31, 2009.

The balance of real estate owned, net of any FHA-insured assets, decreased to $167.3 million at March 31, 2010 from $177.0 million at December 31, 2009 and increased as compared to $106.5 million at March 31, 2009. Repurchased assets were $50.7 million at March 31, 2010 as compared to $45.7 million at December 31, 2009 and $14.8 million at March 31, 2009.

     Funding Sources

Flagstar Bank’s primary sources of funds are deposits obtained through its 162 community banking branches and the internet banking platform as well as deposits obtained from municipalities and investment banking firms. Funds are also obtained through loan repayments and sales in the ordinary course of business, advances from the Federal Home Loan Bank of Indianapolis (FHLB), community banking operations, customer escrow accounts and security repurchase agreements. The Bank uses several of these sources at any one time to manage its daily and forecasted liquidity needs to satisfy operational requirements and policy levels while managing overall interest costs. Retail deposits were $5.1 billion at March 31, 2010, as compared to $5.5 billion at December 31, 2009 and $6.2 billion at March 31, 2009. At March 31, 2010, the Bank had a $7.0 billion line of credit with the FHLB, which was collateralized to $4.0 billion.

     As Previously Announced

     The Company’s quarterly earnings conference call will be held on Wednesday, April 28, 2010 from 11 a.m. until 12 noon (Eastern).

     Questions for discussion at the conference call may be submitted in advance by e-mail to investors@flagstar.com or 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 (702)696-4919 or toll free at (866)294-1212, passcode: 67000077.

Flagstar Bancorp, with $14.3 billion in total assets, is the largest publicly held savings bank headquartered in the Midwest. At March 31, 2010, Flagstar operated 162 banking centers in Michigan, Indiana and Georgia and 23 home loan centers in 14 states. Flagstar Bank originates loans nationwide and is one of the leading originators of residential mortgage loans.

The information contained in this release is not intended as a solicitation to buy Flagstar Bancorp, Inc. stock and is provided for general information. This release contains certain statements that may constitute “forward-looking statements” within the meaning of federal securities laws. These forward-looking statements include statements about the Company’s beliefs, plans, objectives, goals, expectations, anticipations, estimates, and intentions, that are subject to significant risks and uncertainties, and are subject o change based upon various factors (some of which may be beyond the Company’s control). The words “may,” “could,” “should,” “would,” “believe,” and similar expressions are intended to identify forward-looking statements.

Flagstar Bancorp, Inc.
Summary of Selected Consolidated Financial Data
(Dollars in thousands, except per share data)
(Unaudited)

		For the Three Months Ended
		March 31,				December 31,				March 31,
		2010				2009				2009
Summary of Consolidated Statements of Operations
Interest income		$	126,206			$	149,405			$	184,978
Interest expense			(88,523	)			(102,205	)			(128,248	)
Net interest income			37,683				47,200				56,730
Provision for loan losses			(63,559	)			(94,950	)			(158,214	)
Net interest (loss) income after provision			(25,876	)			(47,750	)			(101,484	)
Non-interest income
Deposit fees and charges			8,413				8,774				7,233
Loan fees and charges			16,329				27,802				32,922
Loan administration			26,150				27,407				(31,801	)
Net (loss) gain on trading securities			(3,312	)			(515	)			23,747
Loss on residuals and transferors’ interest			(2,682	)			(16,243	)			(12,535	)
Net gain on loan sales			52,566				96,477				195,694
(Loss) gain on sales of mortgage servicing rights			(2,213	)			59				(82	)
Net gain on sale securities available for sale			2,166				8,556				—
Impairment — securities available for sale			(3,286	)			(304	)			(17,242	)
Other (loss) income			(22,133	)			(20,455	)			(6,977	)
Total non-interest income			71,998				131,558				190,959
Non-interest expenses
Compensation, benefits and commissions			(61,081	)			(64,686	)			(92,069	)
Occupancy and equipment			(16,011	)			(16,456	)			(18,879	)
Asset resolution			(16,573	)			(26,930	)			(24,873	)
Federal insurance premiums			(10,047	)			(8,099	)			(4,236	)
General and administrative			(19,691	)			(34,798	)			(42,895	)
Total non-interest expense			(123,403	)			(150,969	)			(182,952	)
Capitalized direct cost of loan closing			61				235				283
Total non-interest expense after capitalized direct cost of loan closing			(123,342	)			(150,734	)			(182,669	)
Loss before federal income tax and preferred stock dividend			(77,220	)			(66,926	)			(93,194	)
Benefit for federal income taxes			—				—				(28,696	)
Net loss			(77,220	)			(66,926	)			(64,498	)
Preferred stock dividends			(4,680	)			(4,660	)			(2,919	)
Net loss available to common stockholders		$	(81,900	)		$	(71,586	)		$	(67,417	)
Basic loss per share		$	(0.11	)		$	(0.15	)		$	(0.76	)
Diluted loss per share		$	(0.11	)		$	(0.15	)		$	(0.76	)
Net interest spread — Consolidated			1.40	%			1.69	%			1.59	%
Net interest margin — Consolidated			1.29	%			1.54	%			1.59	%
Net interest spread — Bank only			1.45	%			1.74	%			1.63	%
Net interest margin — Bank only			1.42	%			1.67	%			1.67	%
Return on average assets			(2.38	)%			(1.91	)%			(1.68	)%
Return on average equity			(41.02	)%			(45.08	)%			(33.64	)%
Efficiency ratio			112.5	%			84.3	%			73.8	%
Average interest earning assets		$	11,364,244			$	12,283,918			$	14,026,946
Average interest paying liabilities		$	11,773,031			$	12,843,319			$	14,057,366
Average stockholders’ equity		$	798,629			$	635,151			$	801,534
Equity/assets ratio (average for the period)			5.81	%			4.24	%			5.00	%
Ratio of charge-offs to average loans held for investment			2.65	%			4.96	%			3.00	%

Flagstar Bancorp, Inc.
Summary of Selected Consolidated Financial Data
(Dollars in thousands, except per share data)
(Unaudited)

		March 31,				December 31,				March 31,
		2010				2009				2009
Summary of the Consolidated Statements of Financial Condition:
Total assets		$	14,332,842			$	14,013,331			$	16,809,817
Securities classified as trading			893,318				330,267				1,693,140
Securities classified as available for sale			733,788				605,621				775,812
Loans available for sale			1,873,738				1,970,104				3,660,259
Loans available for investment, net			7,042,679				7,190,308				8,480,195
Allowance for loan losses			(538,000	)			(524,000	)			(466,000	)
Mortgage servicing rights			543,447				652,374				522,771
Deposits			8,145,679				8,778,469				9,785,701
FHLB advances			3,900,000				3,900,000				5,200,000
Repurchase agreements			108,000				108,000				108,000
Stockholders’ equity			1,104,764				596,724				930,734
Other Financial and Statistical Data:
Equity/assets ratio			7.71	%			4.26	%			5.54	%
Core capital ratio (bank only)			9.37	%			5.80	%			7.22	%
Total risk-based capital ratio (bank only)			17.93	%			11.23	%			13.58	%
Book value per common share		$	0.57			$	0.70			$	4.03
Shares outstanding			1,470,076				468,771				90,379
Average shares outstanding			776,986				317,656				88,210
Average diluted shares outstanding			776,986				317,656				88,210
Loans serviced for others		$	48,264,731			$	56,521,902			$	58,856,128
Weighted average service fee (bps)			33.0				32.1				33.4
Value of mortgage servicing rights			1.12	%			1.15	%			0.88	%
Allowance for loan losses to non performing loans (bank only)			47.4	%			48.9	%			52.1	%
Allowance for loan losses to loans held for investment (bank only)			7.10	%			6.79	%			5.21	%
Non performing assets to total assets (bank only)			9.45	%			9.25	%			6.06	%
Number of bank branches			162				165				177
Number of loan origination centers			23				23				61
Number of employees (excluding loan officers & account executives)			2,927				3,075				3,285
Number of loan officers and account executives			314				336				519

Loans Held for Investment
(Dollars in thousands)
(unaudited)

		March 31, 2010								December 31, 2009								March 31, 2009
First mortgage loans		$	4,803,425				63.4	%		$	4,990,994				64.7	%		$	5,754,604				64.3	%
Second mortgage loans			210,208				2.8				221,626				2.9				266,198				3.0
Commercial real estate loans			1,555,163				20.5				1,600,271				20.7				1,758,612				19.7
Construction loans			15,544				0.2				16,642				0.2				45,187				0.5
Warehouse lending			576,719				7.6				448,567				5.8				569,120				6.4
Consumer loans			407,742				5.4				423,842				5.5				527,221				5.9
Non-real estate commercial			11,878				0.1				12,366				0.2				25,253				0.2
Total loans held for investment		$	7,580,679				100.0	%		$	7,714,308				100.0	%		$	8,946,195				100.0	%

Allowance for Loan Losses
(Dollars in thousands)
(unaudited)

		March 31,				December 31,				March 31,
		2010				2009				2009
		(000's)				(000's)				(000's)
Beginning Balance		$	(524,000	)		$	(528,000	)		$	(376,000	)
Provision for losses			(63,559	)			(94,950	)			(158,214	)
Charge offs, net of recoveries
First mortgage loans			29,021				32,782				24,941
Second mortgage loans			6,429				10,597				12,603
Commercial R/E loans			8,108				42,311				22,633
Construction loans			20				434				756
Warehouse			472				614				—
Consumer
HELOC			4,523				10,160				6,127
Other consumer loans			332				1,391				678
Other			654				661				476
Charge-offs, net of recoveries			49,559				98,950				68,214
Ending Balance		$	(538,000	)		$	(524,000	)		$	(466,000	)

Composition of Allowance for Loan Losses
As of March 31, 2010
(In thousands)

		General				Specific
Description		Reserves				Reserves				Total
First mortgage loans		$	252,597			$	29,328			$	281,925
Second mortgage loans			36,478				23				36,501
Commercial real estate loans			50,981				112,823				163,804
Construction loans			1,995				257				2,252
Warehouse lending			2,422				1,568				3,990
Consumer loans			35,965				186				36,151
Non-real estate commercial			934				2,210				3,144
Other and unallocated			10,233				—				10,233
Total allowance for loan losses		$	391,605			$	146,395			$	538,000

Loan Originations
(Dollars in millions)
(unaudited)

		March 31,								December 31,								March 31,
		2010								2009								2009
Residential mortgage loans		$	4,330				99.8	%		$	6,902				99.9	%		$	9,500				99.8	%
Consumer loans			1				—				1				—				3				—
Commercial loans			6				0.2				9				0.1				17				0.2
Total loan production		$	4,337				100.0	%		$	6,912				100.0	%		$	9,520				100.0	%

Gain on Loan Sales and Securitizations
(Dollars in thousands)
(Unaudited)

		March 31,								December 31,								March 31,
		2010								2009								2009
		(000's)				bps				(000's)				bps				(000's)				bps
Valuation gain (loss):
Value of interest rate locks		$	3,024				6			$	(30,544	)			(43	)		$	4,032				5
Value of forward sales			(20,055	)			(40	)			60,838				85				2,684				4
Fair value of loans AFS			59,077				118				106,153				149				21,955				29
LOCOM adjustments on loans HFI			(88	)			—				207				—				(257	)			—
Total valuation gain (loss)			41,958				84				136,654				191				28,414				38
Sales gains (losses):
Marketing gains			58,866				117				41,614				58				211,905				274
Pair off losses			(10,064	)			(20	)			(35,990	)			(50	)			(20,746	)			(27	)
Sales adjustments			(31,051	)			(62	)			(37,269	)			(52	)			(20,077	)			(26	)
Provision for secondary marketing reserve			(7,143	)			(14	)			(8,532	)			(12	)			(3,802	)			(5	)
Total sales (losses) gains			10,608				21				(40,177	)			(56	)			167,280				216
Net gain on loan sales and securitizations		$	52,566				105			$	96,477				135			$	195,694				254
Total loan sales and securitizations		$	5,014,748							$	7,143,242							$	7,699,063

Asset Quality
(Dollars in thousands)
(unaudited)

		March 31, 2010								December 31, 2009								March 31, 2009
						% of								% of								% of
		Balance				Total				Balance				Total				Balance				Total
30		$	178,830				2.4	%		$	143,500				1.9	%		$	172,214				1.9	%
60			95,258				1.3				87,625				1.1				129,999				1.5
90 + and matured delinquent			1,136,205				14.9				1,071,636				13.9				893,808				10.0
Total		$	1,410,293				18.6	%		$	1,302,761				16.9	%		$	1,196,021				13.4	%
Loans held for investment		$	7,580,679							$	7,714,308							$	8,946,195

NON-PERFORMING LOANS AND ASSETS
(Dollars in thousands)
(unaudited)

		March 31,				December 31,				March 31,
		2010				2009				2009
Non-performing loans		$	1,136,205			$	1,071,636			$	893,808
Real estate owned			167,265				176,968				106,546
Repurchased assets/non-performing assets			50,735				45,697				14,830
Non-performing assets		$	1,354,205			$	1,294,301			$	1,015,184
Non-performing loans as a percentage of loans held for investment			14.99	%			13.89	%			9.99	%
Non-performing assets as a percentage of total assets			9.45	%			9.25	%			6.06	%

Deposit Portfolio
(Dollars in thousands)
(unaudited)

		March 31, 2010																March 31, 2009
		Balance				Rate (1)				Balance				Rate (1)				Balance				Rate (1)
Demand deposits		$	539,314				0.40	%		$	546,218				0.38	%		$	427,167				0.30	%
Savings deposits			689,480				0.86				724,278				0.73				446,440				1.79
Money market deposits			562,926				0.94				632,099				0.56				662,273				2.10
Certificates of deposits			3,330,182				2.96				3,552,090				2.94				4,647,038				3.66
Total retail deposits			5,121,902				2.18				5,454,685				2.12				6,182,918				3.13
Demand deposits			375,490				0.40				263,085				0.30				19,820				0.46
Savings deposits			80,104				0.50				81,625				0.40				89,849				0.90
Certificate of deposits			194,653				0.98				212,785				1.04				506,649				2.01
Total government deposits			650,247				0.59				620,235				0.64				616,318				1.80
Company controlled custodial deposits			580,787				—				756,423				—				749,102				—
Wholesale deposits			1,792,743				2.67				1,947,126				2.57				2,237,363				3.23
Total deposits		$	8,145,679				2.01	%		$	8,778,469				1.93	%		$	9,785,701				2.83	%

Pre-tax, pre-credit-cost Income
(Non GAAP measure)
(Dollars in millions)
(Unaudited)

		For the Three Months Ended
		March 31, 2010				December 31, 2009				March 31, 2009
Loss before tax provision / benefit		$	(77.2	)		$	(66.9	)		$	(93.2	)
Add back:
Provision for loan losses			63.5				95.0				158.2
Asset resolution			16.6				26.9				24.9
Other than temporary impairment on investments AFS			3.3				6.7				17.2
Secondary marketing reserve provision			26.8				35.8				14.6
Write down of residual interests			2.7				16.2				12.5
Reserve increase for reinsurance			—				—				10.4
Total credit-related-costs:			112.9				180.6				237.8
Pre-tax, pre-credit-cost income (expense)		$	35.7			$	113.7			$	144.6