He gives an example cantered around the company’s origination business, noting Flagstar originates in all six channels – bulk; delegated correspondent; non-delegated correspondent; broker; distributed retail; and direct lending — while competitors focus on a mere handful. The company is assured a healthy balance sheet as a result, Lee explained.

“We’re a one-stop shop whatever the mortgage needs are, whether to find a borrower, broker or lender given that comprehensive flywheel,” he said.

To accomplish that, the bank has used team lift-outs and strategic acquisitions, including purchasing the Bear Stearns correspondent book; its acquisition of Opes Advisors, which strengthened Flagstar’s retail lending capabilities; its purchase of a warehouse lending portfolio from Santander Bank; lift-out of the direct-to-consumer team from Capital One, enabling business to grow exponentially – growing the from $500 million in 2018 to $7 billion this year. 

Another tool in the bank’s arsenal comes in the form of residential mortgage-backed securities (RMBS), making the bank the third-largest provider across the industry. “All of that is backed up by what I believe is the best mortgage origination team in the industry,” Smith said.

Such methodical growth has yielded some impressive stats for the bank: