Flagstar Bank

Flagstar operates as a division of New York Community Bancorp, which completed the acquisition in December 2022. Joseph P. Campanelli serves as Chairman of the board for the combined entity. The mortgage division leadership retained operational continuity through the integration, with Flagstar's brand preserved specifically for the residential lending and servicing business lines.

Mortgage warehouse lending provides short-term secured credit lines to independent mortgage banks and brokers. These originators use the facility to fund home loans at closing, then repay Flagstar once the loans are sold to Fannie Mae, Freddie Mac, or other permanent investors. Flagstar ranks among the largest domestic warehouse lenders and maintained this niche through multiple credit cycles when competitors exited the space.

Flagstar suffered significant losses tied to subprime mortgage exposure and required external recapitalization. MatlinPatterson Global Advisors and Fortress Investment Group provided equity capital through private placements beginning in 2009, ultimately taking a controlling stake. The bank used this capital to absorb losses, shrink legacy loan portfolios, and refocus on agency-eligible mortgage production and servicing.

Flagstar is a federally chartered national bank that historically combined retail branch banking with a national mortgage platform. Following the NYCB acquisition, the franchise operates as a bank subsidiary, but its public-facing identity focuses on residential mortgage origination, servicing, warehouse lending, and multifamily commercial real estate finance.

Flagstar's CRE lending concentrates on multifamily properties, including market-rate apartment buildings, affordable housing, and mixed-use projects with a residential component. The bank also provides construction-to-permanent financing and participates in agency multifamily programs through Fannie Mae DUS and Freddie Mac Optigo lending designations.

Flagstar accepted approximately $266 million from the Treasury's TARP Capital Purchase Program in early 2009. The bank later exchanged the TARP preferred shares for common equity through a series of restructuring transactions tied to the MatlinPatterson recapitalization, and the government's remaining investment was ultimately repaid or sold as part of those deals.

In March 2023, NYCB's Flagstar division acquired certain assets and deposits of Signature Bank from the FDIC following Signature's failure. The transaction included approximately $38 billion in assets and the assumption of roughly $34 billion in deposits tied to Signature's commercial and private client businesses. Flagstar did not acquire Signature's crypto-banking operations.