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Michael Tierney's challenge next year at Flagstar Bancorp is twofold: find ways to go on the offensive while continuing to resolve lingering issues at the Michigan company.
December 18 -
Flagstar Bancorp (FBC) in Troy, Mich., has agreed to pay Freddie Mac $8.9 million in order to settle mortgage repurchase claims.
December 30 -
Flagstar Bancorp (FBC) in Troy, Mich., has agreed to pay Fannie Mae $93.5 million to resolve repurchase claims on mortgages it sold to Fannie that later soured.
November 6 -
Flagstar Bancorp (FBC) will pay $105 million to settle allegations it misrepresented the quality of loans backing securities insured by Assured Guaranty (AGO).
June 21 -
Flagstar Bancorp (FBC) in Troy, Mich., will pay $110 million to settle allegations that it misrepresented the quality of more than $1 billion of private label mortgage-backed securities it sold to investors.
May 3
Flagstar Bancorp (FBC) in Troy, Mich.,
The $11.8 billion-asset company said in a press release that the changes will aid Flagstar in aligning its infrastructure with the current business environment, specifically the status of the mortgage origination market. The cuts represent about 17.5% of the company's workforce. At the end of the third quarter, the company reported 3,428 full-time salaried employees.
Flagstar hopes the cuts will generate annualized cost savings of approximately $40 million when fully effective by the end of the first quarter. However, the company is also expecting to book a $5.2 million charge related to the employee cuts.
"The decision to downsize our workforce was not made lightly," Flagstar president and chief executive Alessandro DiNello said in the release. "But is a necessary step on the path to achieving the Company's long-term goals."
The decision comes after a 2013 where, among other loan-related settlements, Flagstar began by making somewhat unexpected changes at the chief executive level and ended with a settlement with Freddie Mac. In an attempt to reduce the company's risk profile, in December Flagstar
Flagstar
In May, former Flagstar chief executive Michael Tierney stepped down after a mere eight months, as DiNello was immediately promoted.