1033012--3/13/2008--FLAGSTAR_BANCORP

related topics

{loan, real, estate}

{acquisition, growth, future}

{loss, insurance, financial}

{debt, indebtedness, cash}

{regulation, change, law}

{system, service, information}

{personnel, key, retain}

{competitive, industry, competition}

{stock, price, operating}

{condition, economic, financial}

If we cannot effectively manage the impact of the volatility of interest rates, our earnings could be adversely affected. The value of our mortgage servicing rights could decline with reduction in interest rates. Gains on Mortgage Servicing Rights May Be Difficult to Realize Due to Disruption in the Capital Markets. We use estimates in determining the fair value of certain of our assets, which estimates may prove to be incorrect and result in significant declines in valuation. Current and further deterioration in the housing and commercial real estate markets may lead to increased loss severities and further worsening of delinquencies and non-performing assets in our loan portfolios. Consequently, our allowance for loan losses may not be adequate to cover actual losses, and we may be required to materially increase our reserves. Our secondary market reserve for losses could be insufficient. Our home lending profitability could be significantly reduced if we are not able to resell mortgages. Our commercial real estate and commercial business loan portfolios carry heightened credit risk. We have substantial risks in connection with securitizations and loan sales. Our ability to borrow funds and raise capital could be limited, which could adversely affect our earnings. We may be required to raise capital at terms that are materially adverse to our shareholders. Our holding company is dependent on the Bank for funding of obligations and dividends. We may not be able to replace key members of senior management or attract and retain qualified relationship managers in the future. The network and computer systems on which we depend could fail or experience a security breach. Our business is highly regulated. Our business has volatile earnings because it operates based on a multi-year cycle. Our loans are geographically concentrated in only a few states. A large percentage of our loans are collateralized by real estate, and an adverse change in the real estate market may result in losses and adversely affect our portfolio. A significant part of our business strategy involves adding new branch locations, and our failure to grow may adversely affect our business, prospects, results of operations and financial condition. We are subject to heightened regulatory scrutiny with respect to bank secrecy and anti-money laundering statutes and regulations.

Full 10-K form ▸

1033012--3/13/2008--FLAGSTAR_BANCORP_INC