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 RESULTS

Company reduces net loss on declining credit costs
First quarter 2011 net loss is 61.3% lower than the first quarter 2010

TROY, Mich. (April 26, 2011) — Flagstar Bancorp, Inc. (NYSE:FBC) (the “Company”), the holding company for Flagstar Bank FSB, today reported its first quarter results for 2011.

“During the first quarter of 2011, we significantly reduced our net loss from both the prior quarter and the first quarter of 2010, and experienced a fourth straight quarter of declining credit costs, while at the same time, strengthening our capital and liquidity ratios and further de-risking our balance sheet,” commented Joseph P. Campanelli, Chairman of the Board, President and CEO.

Campanelli continued, “We’ve also formally launched our commercial banking initiative, adding several key experienced and proven commercial banking executives to our leadership team during the quarter. In addition, the liquidity we have generated from sales of non-performing loans, seasonal pay-downs and reduced loan originations helps position us to fund new C&I growth while preserving our strong capital ratios.”

For the first quarter 2011, the net loss applicable to common stockholders totaled $(31.7) million, or $(0.06) per share (diluted) based on average shares outstanding of 553,555,000, as compared to a fourth quarter 2010 net loss of $(192.1) million, or $(0.74) per share (diluted) based on average shares outstanding of 259,946,000. For the first quarter 2010, net loss was $(81.9) million, or $(1.05) per share (diluted) based on average shares outstanding of 77,699,000.

Key Items for First Quarter 2011:

	•		Sold $80.3 million of non-performing residential first mortgage loans in the available-for-sale category at a sale price which approximated carrying value.
	•		Provision expense decreased by 87.4 percent from prior quarter, to $28.3 million (a 42.1 percent decrease, excluding $176.5 million related to the fourth quarter 2010 non-performing loan sale).
	•		Asset resolution expense related to non-performing residential and commercial loans decreased by 15.7 percent from the prior quarter, to $25.3 million.
	•		Core deposits increased by 10.0 percent from prior quarter, to $2.8 billion.
	•		Net servicing revenue increased 39.1 percent from the prior quarter, to $39.3 million.
	•		Launched the commercial banking business line, adding experienced and proven executives to solidify the management team.

Asset Quality

In the first quarter 2011, the Company sold $80.3 million of non-performing residential first mortgage loans in the available-for-sale category at a sale price which approximated carrying value.

Non-performing assets totaled $546.9 million at March 31, 2011, compared to $498.0 million at December 31, 2010, and $1.3 billion at March 31, 2010. This category of assets is comprised of non-performing loans (i.e., loans 90 days or more past due and matured loans), real estate owned and net repurchased assets, and it excludes repurchased assets that are insured primarily by the Federal Housing Administration (FHA). The $48.9 million increase in the first quarter 2011 compared to fourth quarter 2010, consisted of a $63.6 million increase in the residential non-performing assets offset by a $14.6 million decrease in commercial real estate non-performing assets.

The allowance for loan losses at March 31, 2011 remained relatively constant at $271.0 million as compared to $274.0 million at December 31, 2010, and equaled 4.7 percent of loans held-for-investment and 73.6 percent of non-performing loans held-for-investment. The allowance for loan losses at December 31, 2010 equaled 4.4 percent of loans held-for-investment and 86.1 percent of non-performing loans held-for-investment. At March 31, 2010, the allowance for loan losses was $538.0 million and equaled 7.1 percent of loans held-for-investment and 47.4 percent of non-performing loans.

“As reflected in our allowance for loan losses, the increase in residential NPA’s is consistent with our expectations, as well as seasonal experience in prior years and reflects the continuing consumer credit issues facing the financial services industry today. The commercial real estate decline is attributable to improving trends in our portfolio resulting from pay-downs and ongoing proactive workout efforts,” said Campanelli.

The Company maintains a secondary marketing reserve on its balance sheet, which reflects the estimate of probable losses that currently exist on loans that it has sold or securitized into the secondary market. The secondary marketing reserve was $79.4 million as of March 31, 2011 and December 31, 2010, and $76.0 million at March 31, 2010. For the first quarter 2011, the Company incurred a secondary marketing reserve provision expense of $22.7 million, compared to $22.3 million in the fourth quarter 2010 and $33.9 million in the first quarter 2010.

Capital

Flagstar Bank remained “well-capitalized” for regulatory purposes at March 31, 2011, with regulatory capital ratios of 9.87 percent for Tier 1 capital and 20.51 percent for total risk-based capital. The Company had an equity-to-asset ratio of 9.50 percent at March 31, 2011.

Mortgage Banking Operations

In the first quarter 2011, gain on loan sales was $50.2 million, as compared to $76.9 million for the fourth quarter 2010 and $52.6 million for the first quarter 2010. This reflects the decrease in interest rate lock commitments, a decrease in loan originations and a decline in margin. Gain on loan sale margins decreased to 0.86 percent for the first quarter 2011, as compared to 0.89 percent for the fourth quarter 2010 and 1.05 percent for the first quarter 2010.

Mortgage rate lock commitments decreased to $5.5 billion during the first quarter 2011, as compared to $8.9 billion during the fourth quarter 2010 and $6.1 billion during the first quarter 2010. Loan originations, substantially comprised of agency-eligible residential first mortgage loans, decreased to $4.9 billion in the first quarter 2011, as compared to $9.2 billion in the fourth quarter 2010, but increased from $4.3 billion in the first quarter 2010. Loan sales for the first quarter of 2011 decreased to $5.8 billion, as compared to $8.6 billion for the fourth quarter 2010, but increased in comparison to $5.0 billion for the first quarter 2010.

At March 31, 2011, loans serviced for others totaled $59.6 billion and had a weighted average servicing fee of 30.2 basis points. This was an increase from $56.0 billion at December 31, 2010, with a weighted average servicing fee of 30.8 basis points, and $48.3 billion at March 31, 2010 with a weighted average servicing fee of 33.0 basis points.

Net Interest Margin

Net interest margin for the Bank decreased to 1.68 percent for the first quarter 2011, as compared to 2.08 percent for the fourth quarter 2010, but increased 26 basis points compared to 1.42 percent for the first quarter 2010. The decrease from fourth quarter 2010 reflects a 9.7 percent decline in average interest earning assets to $9.7 billion, offset by a 4.7 percent decline in average interest bearing liabilities to $10.2 billion for the first quarter 2011.

Average interest-earning deposits, on which the Bank earns a minimal interest rate (25 basis points), increased $654.7 million to $1.6 billion in the first quarter 2011. The Bank’s increased interest-earning deposits will allow the Bank to fund its on-going strategic initiatives to increase commercial, specialty, small business, and mortgage warehouse lending.

The Bank’s deposit cost for the first quarter 2011 was 1.63 percent, an 8.4 percent decline, compared to 1.78 percent in the fourth quarter 2010, and a 28.5 percent decline compared to 2.28 percent in the first quarter 2010. The Bank reduced its deposit funding costs as higher yielding certificates of deposit matured and were replaced with lower-cost deposits. These deposits included both retail and government certificates of deposits, as to which the average rate on retail certificates of deposits declined 11.1 percent and government certificates of deposits declined 13.8 percent during the first quarter of 2011, compared to the fourth quarter 2010.

Net Interest Income

	•		First quarter 2011 net interest income decreased to $39.8 million, as compared to $54.4 million during the fourth quarter 2010, but increased compared to $37.7 million during the first quarter 2010. The $14.6 million decrease from fourth quarter 2010 reflects the decline in the average balances of interest-earning assets, including loans held-for-investment, loans available-for-sale and investment securities available-for-sale, offset by an increase in interest-earning deposits.
	•		Excluding the $176.5 million fourth quarter 2010 provision expense related to the non-performing loan sale, the first quarter 2011 loan loss provision expense of $28.3 million decreased $20.6 million from the fourth quarter 2010. The total provision expense for the fourth quarter 2010 was $225.4 million, which included the $176.5 million related to the non-performing sale. The first quarter 2010 provision expense was $63.6 million.

Non-interest Income

First quarter 2011 non-interest income equaled $96.3 million, as compared to $136.5 million for the fourth quarter 2010 and $72.0 million for the first quarter 2010. Non-interest income included the following components:

	•		Net servicing revenue, which is the combination of net loan administration income and the related hedging effect of gain (loss) on trading securities, increased 39.1 percent to $39.3 million during first quarter 2011 as compared to $28.3 million during fourth quarter 2010. This improved performance is primarily attributable to a 7.0 percent larger portfolio of loans serviced for others, slower than expected levels of prepayments, and effective hedge performance. Hedge performance was driven in part by the steepness of the yield curve and the resulting high level of carry on hedges as well as reduced market volatility.
	•		Gain on loan sales decreased $26.7 million, or 34.8 percent, to $50.2 million, compared to $76.9 million for the fourth quarter 2010, reflecting the decrease in margin for the first quarter 2011 to 0.86 percent from 0.89 percent for the fourth quarter 2010, and the 38.2 percent decline in interest rate locks on mortgage loans to $5.5 billion in the first quarter 2011 from $8.9 billion in the fourth quarter 2010. Residential mortgage loan sales were $5.8 billion for the first quarter of 2011, a 32.6 percent decline, as compared to $8.6 billion in the fourth quarter 2010.
	•		Loan fees, which arise from the origination of residential mortgage loans, decreased 43.6 percent to $16.1 million for the first quarter 2011, as compared to $28.6 million for the fourth quarter 2010. The decrease in loan fees reflected the 46.7 percent decrease in originations to $4.9 billion during the first quarter 2011 as compared to $9.2 billion during the fourth quarter 2010.

•

Other fees and charges were a net expense of $(13.3) million, as compared to a net expense of $(4.7) million for the fourth quarter 2010, principally as the result of a $10.1 million increase in secondary market reserve provisions accrued for probable incurred losses on loans repurchased from the secondary market.

Non-interest Expense

Non-interest expense was $134.5 million for the first quarter 2011, as compared to $150.8 million for the fourth quarter 2010 and $123.3 million for the first quarter 2010.

	•		Compensation, benefits and commissions declined 4.2 percent to $63.3 million for the first quarter 2011, primarily reflecting a decrease in commissions. The $5.1 million, or 40.5 percent, decrease in commission expense was primarily due to the 46.7 percent decrease in loan originations for the first quarter 2011, as compared to the fourth quarter 2010.
	•		Asset resolution expenses, which are expenses associated with foreclosed property and repurchased assets, decreased 15.7 percent to $25.3 million, as compared to $30.0 million in the fourth quarter of 2010. The decline was principally due to improving trends in the commercial real estate portfolio.
	•		Prior warrant expense of $8.7 million was reversed in the first quarter 2011. The decrease was primarily due to the quarterly valuation of the outstanding warrant liability.

Balance Sheet Composition

Total assets at March 31, 2011 were $13.0 billion, as compared to $13.6 billion at December 31, 2010 and $14.3 billion at March 31, 2010. The decrease was primarily due to the reduction in loans available-for-sale as the result of the 46.7 percent decline in loan origination volume for the first quarter 2011, as compared to the fourth quarter 2010. Warehouse loans also decreased 57.9 percent at March 31, 2011 compared to December 31, 2010, as a result of the lower loan origination volume. The increased liquidity derived from the lower origination volume was used during the quarter to repay $325.0 million of short-term FHLB advances and to fund $376.8 million of company controlled deposit outflows primarily associated with timing of payments to tax authorities on behalf of mortgage customers.

Funding Sources

The Bank’s primary sources of funds are deposits obtained through its community banking branches and its internet banking platform as well as deposits obtained from municipalities and investment banking firms. Funds are also obtained from time to time through loan repayments and sales of loans and securities in the ordinary course of business, advances from the FHLB, community banking operations, customer escrow accounts and security repurchase agreements. The Bank relies upon several of these sources at different times to address its daily and forecasted liquidity needs for operational requirements and policy levels while managing overall net interest costs. Retail deposits were $5.5 billion at March 31, 2011, $5.4 billion at December 31, 2010 and $5.5 billion at March 31, 2010.

At March 31, 2011, the Bank had a collateralized $4.2 billion line of credit with the FHLB with $3.4 billion advanced or borrowed, and $742.7 million of remaining borrowing capacity. The Bank also had $2.3 billion of liquidity in the form of cash on hand, interest-earning deposits and securities available for sale or trading.

Community Banking Operations

Flagstar Bank had 162 community banking branches at March 31, 2011, December 31, 2010 and March 31, 2010.

Earnings Conference Call

The Company’s quarterly earnings conference call will be held on Wednesday, April 27, 2011 from 11 a.m. until noon (Eastern).

Questions for discussion at the conference call may be submitted in advance by e-mail to investors@flagstar.com or 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: 55599906.

Flagstar Bancorp, with $13.0 billion in total assets, is the largest publicly held savings bank headquartered in the Midwest. At March 31, 2011, Flagstar operated 162 banking centers in Michigan, Indiana and Georgia and 29 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 to 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,
		2011				2010				2010
Summary of Consolidated
Statements of Operations
Interest income		$	98,405			$	118,292			$	126,206
Interest expense			(58,607	)			(63,876	)			(88,523	)
Net interest income			39,798				54,416				37,683
Provision for loan losses			(28,309	)			(225,375	)			(63,559	)
Net interest income (loss) after provision			11,489				(170,959	)			(25,876	)
Non-interest income
Deposit fees and charges			7,500				7,385				8,413
Loan fees and charges			16,138				28,605				16,329
Loan administration			39,336				28,269				26,150
Net loss on trading securities			(74	)			(173	)			(3,312	)
Net (loss) gain on residuals and transferors’ interest			(2,381	)			3,812				(2,682	)
Net gain on loan sales			50,184				76,930				52,566
Net loss on sales of mortgage servicing rights			(112	)			(2,303	)			(2,213	)
Net gain on sale securities available for sale			—				—				2,166
Net loss on sale of assets			(1,036	)			—				—
Impairment — securities available for sale							(1,313	)			(3,286	)
Other fees			(13,289	)			(4,749	)			(22,133	)
Total non-interest income			96,266				136,463				71,998
Non-interest expenses
Compensation, benefits and commissions			(63,308	)			(66,011	)			(61,022	)
Occupancy and equipment			(16,618	)			(17,614	)			(16,011	)
Asset resolution			(25,335	)			(30,037	)			(16,573	)
Federal insurance premiums			(8,725	)			(8,179	)			(10,047	)
Warrant income (expense)			827				(7,853	)			(1,227	)
Other taxes			(866	)			481				(855	)
General and administrative			(20,430	)			(21,567	)			(17,607	)
Total non-interest expense			(134,455	)			(150,780	)			(123,342	)
Loss before federal income taxes and preferred stock dividends			(26,700	)			(185,276	)			(77,220	)
Provision for federal income taxes			264				2,104				—
Net loss			(26,964	)			(187,380	)			(77,220	)
Preferred stock dividends			(4,710	)			(4,690	)			(4,680	)
Net loss available to common stockholders		$	(31,674	)		$	(192,070	)		$	(81,900	)
Basic loss per share (1)		$	(0.06	)		$	(0.74	)		$	(1.05	)
Diluted loss per share (1)		$	(0.06	)		$	(0.74	)		$	(1.05	)

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,
		2011				2010				2010
Summary of Consolidated
Statements of Operations
Net interest spread — Consolidated			1.78	%			2.06	%			1.40	%
Net interest margin — Consolidated			1.61	%			2.02	%			1.29	%
Net interest spread — Bank only			1.79	%			2.07	%			1.45	%
Net interest margin — Bank only			1.68	%			2.08	%			1.42	%
Return on average assets			(0.96	)%			(5.47	)%			(2.38	)%
Return on average equity			(10.17	)%			(59.38	)%			(41.02	)%
Efficiency ratio			98.8	%			79.0	%			112.5	%
Average interest earning assets		$	9,727,655			$	10,773,561			$	11,364,244
Average interest paying liabilities		$	10,460,463			$	10,960,772			$	11,773,031
Average stockholder’s equity		$	1,245,229			$	1,293,937			$	798,629
Equity/assets ratio (average for the period)			9.48	%			9.20	%			5.80	%
Ratio of charge-offs to average loans held for investment			2.14	%			5.78	%			2.65	%

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

Summary of Consolidated		March 31,				December 31,				March 31,
Statements of Financial Condition:		2011				2010				2010
Total assets		$	13,016,967			$	13,643,504			$	14,332,842
Securities classified as trading			160,650				160,775				893,318
Securities classified as available for sale			452,368				475,225				733,788
Loans available for sale			1,609,501				2,585,200				1,873,744
Loans held for investment			5,764,675				6,305,483				7,580,679
Allowance for loan losses			(271,000	)			(274,000	)			(538,000	)
Mortgage servicing rights			635,122				580,299				543,447
Government insured repurchased assets			1,781,825				1,731,276				926,970
Deposits			7,748,910				7,998,099				8,145,679
FHLB advances			3,400,000				3,725,083				3,900,000
Repurchase agreements			—				—				108,000
Stockholder’s equity			1,237,022				1,259,663				1,104,764
Other Financial and Statistical Data:
Equity/assets ratio			9.50	%			9.23	%			7.71	%
Core capital ratio (bank only)			9.87	%			9.61	%			9.39	%
Total risk-based capital ratio (bank only)			20.51	%			18.55	%			17.98	%
Book value per common share		$	1.78			$	1.83			$	5.85
Shares outstanding at the period ended (000’s)			553,712				553,313				147,008
Average shares outstanding for the period ended (000’s)			553,555				161,565				77,699
Average diluted shares outstanding for the period ended (000’s)			553,555				161,565				77,699
Loans serviced for others		$	59,577,239			$	56,040,063			$	48,264,731
Weighted average service fee (bps)			30.2				30.8				33.0
Value of mortgage servicing rights			1.07	%			1.04	%			1.12	%
Allowance for loan losses to non-performing loans held for investment (1)			73.6	%			86.1	%			47.4	%
Allowance for loan losses to loans held for investment (1)			4.70	%			4.35	%			7.10	%
Non-performing assets to total assets (bank only)			4.26	%			4.35	%			9.30	%
Number of bank branches			162				162				162
Number of loan origination centers			29				27				23
Number of employees (excluding loan officers and account executives)			3,030				3,001				2,927
Number of loan officers and account executives			306				278				314

Loan Originations
(Dollars in thousands)
(Unaudited)

		For the Three Months Ended
		March 31,								December 31,								March 31,
Loan type		2011								2010								2010
Residential mortgage loans		$	4,856,384				99.4	%		$	9,164,615				99.9	%		$	4,330,388				99.8	%
Consumer loans			1,127				—				1,022				—				621				—
Commercial loans			30,337				0.6				12,440				0.1				6,202				0.2
Total loan originations		$	4,887,848				100.0	%		$	9,178,077				100.0	%		$	4,337,211				100.0	%

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

		March 31,								December 31,								March 31,
Description		2011								2010								2010
First mortgage residential loans		$	3,751,772				65.1	%		$	3,784,700				60.1	%		$	4,803,425				63.4	%
Second mortgage residential loans			165,161				2.8				174,789				2.8				210,208				2.8
Construction loans			3,246				0.1				8,012				0.1				15,544				0.2
Warehouse lending			303,785				5.3				720,770				11.4				576,719				7.6
Commercial real estate loans			1,170,198				20.3				1,250,301				19.8				1,555,163				20.5
Commercial lease financing			25,138				0.4				—				—				—				—
Non-real estate commercial			9,326				0.2				8,875				0.1				11,878				0.1
Consumer loans			336,049				5.8				358,036				5.7				407,742				5.4
Total loans held for investment		$	5,764,675				100.0	%		$	6,305,483				100.0	%		$	7,580,679				100.0	%

Composition of Mortgage Loans Held for Investment
(In thousands)
(Unaudited)

		March 31, 2011								December 31, 2010
		Portfolio Balance (1)				Allowance (1)				Portfolio Balance (1)				Allowance (1)
Performing modified (TDR)		$	562,570			$	45,309			$	576,594			$	46,857
Performing and not delinquent within last 36 months			2,326,486				29,798				2,084,578				27,700
Performing with government insurance			127,953				—				122,677				—
Other performing			631,833				29,886				987,975				43,462
Non-performing — 90+ day delinquent			146,951				38,986				76,572				19,786
Non-performing with government insurance			66,460				1,513				56,587				1,915
30 day and 60 day delinquent			57,926				4,642				62,518				4,866
Total		$	3,920,179			$	150,134			$	3,967,501			$	144,586

Composition of Commercial Loans Held for Investment
(In thousands)
(Unaudited)

		March 31, 2011								December 31, 2010
		Portfolio Balance (1)				Allowance (1)				Portfolio Balance (1)				Allowance (1)
Performing — not impaired		$	893,670			$	33,766			$	933,557			$	31,291
Special mention — not impaired			97,624				7,316				85,103				5,907
Impaired			5,649				957				73,631				17,181
Non-performing — not impaired			63,915				15,834				6,485				752
Non-performing			143,804				36,429				160,400				39,847
Total		$	1,204,662			$	94,302			$	1,259,176			$	94,978

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

		For the Three Months Ended
		March 31,				December 31,				March 31,
		2011				2010				2010
Beginning balance		$	(274,000	)		$	(474,000	)		$	(524,000	)
Provision for losses			(28,309	)			(48,914	)			(63,559	)
Provision for losses — NPL sale			—				(176,461	)			—
Total provision for losses			(28,309	)			(225,375	)			(63,559	)
Charge offs, net of recoveries
First mortgage loans			2,138				31,614				29,021
First mortgage loans — NPL sale			—				327,295				—
Second mortgage loans			4,920				5,454				6,429
Commercial real estate loans			18,608				55,833				8,108
Construction loans			—				81				20
Warehouse loans			(5	)			182				472
Consumer loans:
HELOC loans			4,577				4,185				4,523
Other consumer loans			600				340				332
Other			471				391				654
Charge-offs, net of recoveries			31,309				425,375				49,559
Ending balance		$	(271,000	)		$	(274,000	)		$	(538,000	)

Composition of Allowance for Loan Losses
As of March 31, 2011
(In thousands)
(Unaudited)

Description		General Reserves				Specific Reserves				Total
First mortgage loans		$	118,112			$	8,829			$	126,941
Second mortgage loans			21,523				572				22,095
Commercial real estate loans			42,435				49,969				92,404
Construction loans			551				288				839
Warehouse lending			1,040				976				2,016
Consumer loans:
HELOC loans			16,889				—				16,889
Other consumer loans			2,479				—				2,479
Commercial lease financing			251				—				251
Non-real estate commercial			1,051				596				1,647
Other and unallocated			5,439				—				5,439
Total allowance for loan losses		$	209,770			$	61,230			$	271,000

Non-Performing Loans and Assets
(Dollars in thousands)
(Unaudited)

		March 31,				December 31,				March 31,
		2011				2010				2010
Non-performing loans held for investment		$	368,152			$	318,416			$	1,136,205
Real estate owned			146,372				151,085				167,265
Net repurchased assets/non-performing assets			32,402				28,472				29,189
Non-performing assets (1)			546,926				497,973				1,332,659
Non-performing loans available for sale			6,598				94,889				—
Non-performing assets including loans available for sale		$	553,524			$	592,862			$	1,332,659
Non-performing loans held for investment as a percentage of loans held for investment (1)			6.39	%			5.05	%			14.99	%
Non-performing assets as a percentage of total assets			4.26	%			4.35	%			9.30	%

Asset Quality — Loans Held-for-Investment
(Dollars in thousands)
(Unaudited)

		March 31, 2011								December 31, 2010								March 31, 2010
						% of								% of								% of
Days delinquent		Balance				Total				Balance				Total				Balance				Total
30		$	94,132				1.6	%		$	133,449				2.1	%		$	178,830				2.4	%
60			56,037				1.0				53,745				0.9				95,258				1.3
90+ and matured delinquent			368,152				6.4				318,416				5.0				1,136,205				14.9
Total		$	518,321				9.0	%		$	505,610				8.0	%			1,410,293				18.6	%
Loans held for investment		$	5,764,675							$	6,305,483							$	7,580,679

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

		For the Three Months Ended
		March 31, 2011								December 31, 2010								March 31, 2010
Description		(000’s)				bps				(000’s)				bps				(000’s)				bps
Valuation gain (loss):
Value of interest rate locks		$	(616	)			(1	)		$	(36,144	)			(42	)		$	3,024				6
Value of forward sales			(40,361	)			(69	)			54,937				64				(20,055	)			(40	)
Fair value of loans available for sale			44,322				76				37,099				43				59,077				118
LOCOM adjustments on loans held for investment			(30	)			—				248				—				(88	)			—
Total valuation gains			3,315				6				56,140				65				41,958				84
Sales gains (losses):
Marketing gains, net of adjustments			751				1				26,748				32				27,815				55
Pair-off gains (losses)			48,458				83				5,998				7				(10,064	)			(20	)
Provisions for secondary marketing reserve			(2,339	)			(4	)			(11,956	)			(14	)			(7,143	)			(14	)
Total sales gains			46,870				80				20,790				24				10,608				21
Total gain on loan sales and securitizations		$	50,185				86			$	76,930				89			$	52,566				105
Total loan sales and securitizations		$	5,829,508							$	8,612,997							$	5,014,748

Average Balances, Yields and Rates
(Dollars in thousands)
(Unaudited)

		For the Three Months Ended
		March 31, 2011								December 31, 2010								March 31, 2010
		Average				Annualized				Average				Annualized				Average				Annualized
		Balance				Yield/Rate				Balance				Yield/Rate				Balance				Yield/Rate
Interest-Earning Assets:
Loans available for sale		$	1,683,814				4.44	%		$	2,408,275				4.39	%		$	1,521,640				4.98	%
Loans held for investment:
Mortgage loans			3,935,068				4.67				4,276,034				4.57				5,115,419				4.79
Commercial loans			1,562,079				5.02				2,149,127				5.11				1,956,926				4.89
Consumer loans			347,019				6.05				364,926				6.13				415,930				5.97
Loans held for investment			5,844,166				4.84				6,790,087				4.84				7,488,275				4.88
Securities classified as available for sale or trading			629,444				5.15				659,650				5.28				1,137,521				5.43
Interest-earning deposits and other			1,570,231				0.25				915,549				0.24				1,216,808				0.21
Total interest-earning assets			9,727,655				4.05				10,773,561				4.37				11,364,244				4.45
Other assets			3,410,758								3,284,523								2,397,983
Total assets		$	13,138,413							$	14,058,084							$	13,762,227
Interest-Bearing Liabilities:
Demand deposits		$	398,360				0.39	%		$	391,972				0.42	%		$	370,016				0.56	%
Savings deposits			1,075,253				0.90				918,289				0.96				688,978				0.84
Money market deposits			555,983				0.78				554,803				0.88				581,848				0.89
Certificate of deposits			3,185,614				1.93				3,314,286				2.17				3,390,755				2.96
Total retail deposits			5,215,210				1.48				5,179,350				1.68				5,031,597				2.26
Demand deposits			77,747				0.54				161,056				0.28				291,901				0.38
Savings deposits			357,122				0.65				313,394				0.65				77,233				0.48
Certificate of deposits			251,646				0.69				274,820				0.80				273,685				0.76
Total government deposits			686,515				0.65				749,270				0.63				642,819				0.55
Wholesale deposits			841,073				3.34				987,189				3.15				1,790,434				2.95
Total deposits			6,742,798				1.63				6,915,809				1.78				7,464,850				2.28
FHLB Advances			3,469,055				3.50				3,796,353				3.26				3,900,000				4.35
Security repurchase agreements			—				—				—				—				108,000				4.33
Other			248,610				2.62				248,610				2.64				300,182				4.99
Total interest-bearing liabilities			10,460,463				2.27				10,960,772				2.31				11,773,032				3.05
Other liabilities			1,432,721								1,803,375								1,190,566
Stockholder’s equity			1,245,229								1,293,937								798,629
Total liabilities and stockholder’s equity		$	13,138,413							$	14,058,084							$	13,762,227