Michigan-based Flagstar Bancorp, Inc., parent company of Flagstar Bank, has reduced its mortgage staff by 20% since the calendar turned to 2022, laying off 420 employees amid a significant drop in origination volumes and margins.

Overall, the bank’s net income in the first quarter of 2022 dropped 60.4% from the prior quarter, to $53 million. Mortgage revenue decreased $36 million in the same period, to $74 million from January to March.

“Gain on sale revenue was under significant pressure throughout the quarter as the velocity of the increase in mortgage rates rose at the fastest rate this century,” details ⇒

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