Flagstar Bank is one of the biggest home lenders in the U.S. that most people have never heard of.  They do a lot of business with mortgage brokers, who originate the home loan.  Flagstar then purchases the loan servicing rights, which means the home owner winds up making their monthly payments to Flagstar.  This is a common practice and nothing to be worried about, but it’s one of the reasons a lot of people haven’t heard much about this particular lender.

Flagstar does also originate mortgages through their own retail efforts in some areas, mainly the midwest.  Most mortgage brokers I know appreciate Flagstar because they are ahead of the curve when it comes to technology (much of the process of getting a loan for a borrower is handled online, if not all) and they have very competitive rates.

Have you had experience with Flagstar?  What did you think?

Flagstar Bank’s home page.