Flagstar Bancorp Inc. increased its loss for the fourth quarter and 2011 by $4.2 million after revising a payment to settle claims regarding underwriting practices associated with loans insured by the Federal Housing Administration.
The $13.6 billion-asset company said Tuesday that based on new calculations, it lost $78.2 million in the fourth quarter and $198.9 million in 2011.
The Troy, Mich.-based mortgage banker – which ranks ninth among all originators -- revised the discount rate assumptions used in calculating the fair value of payments in the settlement after discussion with the Securities and Exchange Commission.
In February, Flagstar said it had reached an agreement with the Justice Department to pay up to $133 million to settle the claims. The bank made an initial payment of $15 million recorded
Originally the lender said the additional payment for last quarter