Press release from Business Wire
Glancy Binkow & Goldberg LLP Announces Investigation of Flagstar Bancorp, Inc.
Monday, April 09, 2012
Glancy Binkow & Goldberg LLP Announces Investigation of Flagstar Bancorp, Inc.21:55 EDT Monday, April 09, 2012 LOS ANGELES (Business Wire) -- Glancy Binkow & Goldberg LLP announces that it is investigating potential claims on behalf of shareholders of Flagstar Bancorp, Inc. ("Flagstar” or the “Company”) (NYSE:FBC) concerning possible breaches of fiduciary duties by the Company or its fiduciaries. Flagstar is the holding company for Flagstar Bank, FSB, which offers financial products and services to individuals and small- and middle-market businesses in Michigan, Indiana and Georgia. The investigation concerns a complaint filed February 24, 2012 by the U.S. Department of Justice (DOJ) in the United States District Court for the Southern District of New York alleging that for more than a decade Flagstar had been improperly approving thousands of residential home mortgage loans for government insurance. Specifically, the DOJ alleged that: (i) since January 2002 Flagstar routinely delegated key underwriting functions to staff employees who were not experienced underwriters; (ii) the underwriters falsely certified that they had themselves reviewed all of the loan documents and had exercised due diligence; (iii) Flagstar's underwriters endorsed ineligible loans for FHA insurance but falsely certified to the Department of Housing and Urban Development that the loans were eligible; and (iv), Flagstar set daily quotas for its underwriters and paid them substantial incentive awards for exceeding the quotas. The same day the DOJ complaint was filed, Flagstar agreed to a settlement with the DOJ and agreed to pay $15 million within 30 days after court approval of the settlement and an additional $117.8 million upon meeting certain financial benchmarks, and to repay $266.7 million that Flagstar received as part of the Troubled Asset Relief Program. If you purchased Flagstar shares between January 2002 and the present and still hold those shares, if you have information or would like to learn more about these claims, or if you wish to discuss these matters or have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Michael Goldberg, Esquire, of Glancy Binkow & Goldberg LLP, 1925 Century Park East, Suite 2100, Los Angeles, California 90067, by telephone at (310) 201-9150, Toll Free at (888) 773-9224, by e-mail to email@example.com, or visit our website at http://www.glancylaw.com. This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules. Glancy Binkow & Goldberg LLP, Los Angeles, CAMichael Goldberg(310) 201-9150 or (888) firstname.lastname@example.org