Top Ranked Residential Lender Gets Delisting Warning

Flagstar Bank FSB, a top 15 ranked residential lender, Wednesday afternoon acknowledged that it received a delisting warning from the New York Stock Exchange because of its low share price.

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The NYSE told the Michigan-based thrift that it is “below criteria” because the average closing price of its common stock was less than $1 per share over a consecutive 30-trading-day period.

In a filing with the SEC, the lender notes that “in order to cure the deficiency for this continued listing standard” its common stock share price and the average share price over a consecutive 30-trading-day period “both must exceed $1 on February 18, 2012 (six months following receipt of the non-compliance notice) or on the last trading day of any month prior to that date.”

Flagstar, which ranks 11th nationwide among all residential originators, said it has “not yet determined the specific action or response to take in response to the NYSE’s notice.”

It is also a top ranked warehouse provider, according to figures compiled by National Mortgage News and the Quarterly Data Report.

In the second quarter the company posted a $74.9 million loss compared to a $97 million loss in the same period a year earlier. The thrift’s revenues have been hammered by legacy assets including commercial real estate loans.

On Wednesday its share price closed down 3% on the day to 60 cents. Its 52-week low is 45 cents, its high $2.75. At press time an official in Flagstar’s investor relations department had not returned a telephone call about the matter.

MP (Thrift) Global Advisers III LLC, controls 64% of its shares.

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Article source: http://www.nationalmortgagenews.com/dailybriefing/2010_417/residential-lender-delisting-warning-1026282-1.html?CMP=OTC-RSS

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