PRNewswire 18-Sep-2019 5:00 PM
TROY, Mich., Sept. 18, 2019 /PRNewswire/ -- Flagstar Bank, a subsidiary of Flagstar Bancorp, Inc. (NYSE:FBC), today announced it had completed the sale of all the securities acquired as collateral for its loan to Live Well Financial, Inc. As a result, Flagstar has no further exposure remaining. "I am very pleased to have put this situation behind us," said Alessandro DiNello, Flagstar president and chief executive officer. "Criminal and civil legal proceedings are progressing as expected against Live Well and its principals. We continue to cooperate with prosecutors and the SEC, and will otherwise actively pursue all legal remedies available to us."
Based on the results of this sale, Flagstar expects to report a recovery of $1 million in the third quarter 2019. "While any additional recoveries are uncertain, we are confident in the merits of our case and, considering assets identified by the government, are hopeful that we will realize additional recoveries," DiNello said.
Flagstar Bancorp, Inc. (NYSE:FBC) is a $20.2 billion savings and loan holding company headquartered in Troy, Mich. Flagstar Bank, FSB, provides commercial, small business, and consumer banking services through 160 branches in Michigan, Indiana, California, Wisconsin and Ohio. It also provides home loans through a wholesale network of brokers and correspondents in all 50 states, as well as 78 retail locations in 21 states, representing the combined retail branches of Flagstar and its Opes Advisors mortgage division. Flagstar is a leading national originator and servicer of mortgage and other consumer loans, handling payments and record keeping for $203 billion of loans representing 983,000 borrowers. For more information, please visit flagstar.com.
For more information, contact:
SOURCE Flagstar Bank