Flagstar Bancorp has posted a quarterly gain of $43.6 million over the first quarter of 2013. "Our second quarter results represent the successful continuation of Flagstar's efforts to reduce risk, address legacy issues and build strong capital levels," said Alessandro DiNello, Flagstar’s president and chief executive officer. "We believe that these efforts, along with new initiatives to reduce expenses and maximize efficiency across the organization, collectively position Flagstar for long-term growth and shareholder value creation.” The $40 million-plus increase is at least due, in part, to Flagstar focusing on their mortgage origination team. “With that said, our number one goal is to grow revenue. We plan to accomplish this in a few ways. First and foremost, to continue to grow our national mortgage presence and not just status quo either. We believe we can get much more out of this business,” said DiNello. Though mortgage originations decreased, to $10.9 billion in the second quarter, purchase originations comprised around 29 percent of all mortgage originations during Q2 2013. This is an increase from the previous quarter, which was around 19 percent. The shift in greater numbers indicates a more purchase-driven consumer base and increased mortgage rate levels. Q1 mortgage originations stood at $12.4 billion for 2013 and $12.5 billion for the second quarter 2012. Loan fees and charges decreased to around $30 million for Q2 2013. Net servicing revenue increased to around $36 million, a sharp increase from the previous quarter’s $20 million. On May 2, Flagstar entered into an agreement to settle a lawsuit which was filed by MBIA on Jan. 11, 2013. The lawsuit involved approximately $1.1 billion of non-agency securitization transactions in 2006 and 2007 involving fixed and adjustable rate second mortgage loans that MBIA insured. Under the terms of the Settlement Agreement, MBIA terminated its pending suit, and in exchange, among other consideration and transaction provisions, Flagstar paid MBIA $110 million. On June 21, Flagstar entered into an agreement to settle a lawsuit filed by Assured. The litigation pertained to $902.2 million of non-agency securitization transactions in 2005 and 2006 involving home equity line of credit (HELOC) loans which were insured by Assured. Under the terms of the Assured Settlement Agreement, Assured terminated its pending lawsuit and will not pursue any related claims at any time in the future. In exchange, Flagstar paid Assured $105 million and will assume responsibility for future claims associated with the two HELOC securitization trusts.