Company Overview of Flagstar Bank, FSB

Effective May 15, 2013, Michael J. Tierney resigned as Chief Executive Officer of Flagstar Bank, FSB. Mr. Tierney also resigned from the Boards of Directors of the company effective as of that same date. Mr. Tierney has accepted a new position with the Bank, effective immediately, as Executive Vice President, Personal Financial Services.

Flagstar Bank, FSB announced that boards of directors have appointed Alessandro ("Sandro") DiNello to serve as President and Chief Executive Officer of the bank, effective immediately. Upon becoming CEO, Mr. DiNello will replace Michael Tierney as a director the Bank. Mr. Tierney, who has served as CEO of the Bank since November 2012 will resume his role as the Bank's Executive Vice President, Personal Financial Services, a position he held prior to becoming President. In addition, the Bank announced that its board of directors has appointed Lee M. Smith to serve as Chief Operating Officer. Sandro has served as executive vice president of Flagstar since 2003, most recently in Personal Financial Services. Mr. Smith has most recently been a Partner with MP (Thrift) Global Advisers III LLC.

Flagstar Bancorp Inc., the holding company for Flagstar Bank, FSB announced that the Bank has entered into an agreement to settle the previously disclosed lawsuit which was filed by MBIA Insurance Corporation on January 11, 2013. The lawsuit relates to approximately $1.1 billion of non-agency securitization transactions in 2006 and 2007 involving fixed and adjustable rate second mortgage loans that MBIA insures. Under the terms of the Settlement Agreement, MBIA will terminate its pending lawsuit against Flagstar and in exchange, among other consideration and transaction provisions, Flagstar will pay MBIA $110.0 million. Given the level of its current reserve for pending and threatened litigation, Flagstar does not expect any significant financial impact as a result of the Settlement Agreement.