Flagstar Bancorp (FBC) will move $48.3M from reserves to income after agreeing to pay Assured...

|About: Flagstar Bancorp, Inc. (FBC)|By:, SA News Editor

Flagstar Bancorp (FBC) will move $48.3M from reserves to income after agreeing to pay Assured Guaranty (AGO) $105M to settle fraud claims related to $902M of MBS. The $48.3M represents about $0.85/share, no small amount compared to analyst EPS estimates of $2.06 for all 2013. One of the legs of a bullish Flagstar thesis is its over-reserving for MBS reps & warranties, litigation expense, and future loan losses.