Daily News: August 20, 2018

Fed Lifts Flagstar Bank Supervisory Agreement

The Federal Reserve lifted its supervisory agreement with Flagstar Bancorp as of August 14, 2018.

The supervisory agreement included a number of provisions, including requirements to submit a capital plan annually and receive written non-objection from the Fed before paying a dividend or repurchasing stock, incurring or renewing holding company debt or engaging in affiliate transactions.

“This is a major milestone for our company, representing the last major regulatory issue with the old Flagstar,” said Alessandro P. DiNello, Flagstar president and CEO. “This action reflects our successful effort in building a strong financial institution that can deliver solid results within the framework of a strong risk and compliance structure. The lifting of the agreement ushers in a new era for our holding company, providing more flexibility in entering into strategic transactions.

“It’s been a long road to reach this positive outcome. I would like to personally thank the entire Flagstar team for their dedication and our shareholders for their support. I also appreciate the Fed’s collaboration over the past several years to strengthen our company. We are now focused on continuing our journey to build a great company.”