3rd Quarter 2020 Flagstar Bancorp, Inc. (NYSE: FBC) Earnings Presentation 3rd Quarter 2020 October 21, 2020 1

Cautionary statements 3rd Quarter 2020 This presentation contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, as amended. Forward-looking statements are based on management’s current expectations and assumptions regarding the Company’s business and performance, the economy and other future conditions, and forecasts of future events, circumstances and results. However, they are not guarantees of future performance and are subject to known and unknown risks, uncertainties, contingencies and other factors. Generally, forward-looking statements are not based on historical facts but instead represent our management’s beliefs regarding future events. Such statements may be identified by words such as believe, expect, anticipate, intend, plan, estimate, may increase, may fluctuate, and similar expressions or future or conditional verbs such as will, should, would and could. Such statements are based on management’s current expectations and are subject to risks, uncertainties and changes in circumstances. Actual results and capital and other financial conditions may differ materially from those included in these statements due to a variety of factors, including without limitation those found in periodic Flagstar reports filed with the U.S. Securities and Exchange Commission, which are available on the Company’s website (flagstar.com) and on the Securities and Exchange Commission's website (sec.gov). Any forward-looking statements made by or on behalf of us speak only as to the date they are made, and we do not undertake to update forward-looking statements to reflect the impact of circumstances or events that arise after the date the forward-looking statements were made, except as required under United States securities laws. In addition to results presented in accordance with GAAP, this presentation includes non-GAAP financial measures. The Company believes these non-GAAP financial measures provide additional information that is useful to investors in helping to understand the capital requirements Flagstar will face in the future and underlying performance and trends of Flagstar. Non-GAAP financial measures have inherent limitations, which are not required to be uniformly applied. Readers should be aware of these limitations and should be cautious with respect to the use of such measures. To compensate for these limitations, we use non-GAAP measures as comparative tools, together with GAAP measures, to assist in the evaluation of our operating performance or financial condition. Also, we ensure that these measures are calculated using the appropriate GAAP or regulatory components in their entirety and that they are computed in a manner intended to facilitate consistent period-to-period comparisons. Flagstar’s method of calculating these non-GAAP measures may differ from methods used by other companies. These non-GAAP measures should not be considered in isolation or as a substitute for those financial measures prepared in accordance with GAAP or in-effect regulatory requirements. Where non-GAAP financial measures are used, the most directly comparable GAAP or regulatory financial measure, as well as the reconciliation to the most directly comparable GAAP or regulatory financial measure, can be found in these conference call slides. Additional discussion of the use of non-GAAP measures can also be found in the Form 8-K Current Report related to this presentation and in periodic Flagstar reports filed with the U.S. Securities and Exchange Commission. These documents can all be found on the Company’s website at flagstar.com. 2

Executive Overview 1st Quarter 2020 Sandro DiNello, CEO

Strategic highlights 3rd Quarter 2020 • Supporting employees, communities and customers during the pandemic, with focus on their health, safety and Unique financial well-being relationship-based business model • Diverse revenue streams and flexible balance sheet produced strong results in declining interest rate environment by capitalizing on the resulting beneficial mortgage market • Well diversified loan portfolio, with no outsized exposure to any geography or industry reflects our disciplined Grow community approach to growing the Community Bank banking and servicing • Servicing business produced consistent results for the quarter, while also highlighting our competitive advantage as the subservicing business is housed within a well capitalized Bank with ample liquidity • Leveraged multi-channel origination platform to generate solid fallout adjusted lock growth, even with most of our staff Strengthen working remotely during the quarter mortgage • Invested in people and technology, expanding retail and generating more business in the most profitable channels Highly profitable • Delivered strong pre-provision net revenue despite the volatility in the market that was caused from the COVID-19 operations pandemic • Durable business model well-positioned to weather the storm--profitability is strong--capital is strong--allowance is Positioned to thrive strong--and liquidity is strong in any market • Maintaining quarterly dividend--demonstrating a commitment to return capital to our shareholders while still being prudent in managing our balance sheet in these uncertain times 4

Financial Overview 1st Quarter 2020 Jim Ciroli, CFO

Financial highlights 3rd Quarter 2020 • Net income of $222mm, or $3.88 per diluted share, in 3Q20 • Pre-tax, pre-provision net revenue of $327mm in 3Q20, an increase of $77mm vs. 2Q20, demonstrating ability to generate strong Solid earnings earnings in a volatile market • Grew TBV per share $7.98, or 29%, to $35.60 per share at 9/30/20, compared to $27.62 per share at 9/30/19 • Net interest margin, excluding the impact from loans with government guarantees that have not been repurchased was 2.94% for the Growth in quarter, up 6 basis points, vs. 2Q20 community banking - Performance driven by higher levels of warehouse loans and the impact of lower rates on deposit and borrowing costs and servicing - Low funding rates locked in using interest rate swaps and LT advances with terms from 3 to 7 years • Consistent servicing results as total loans serviced increased 100k, to 1.1 million loans at period end • Mortgage revenue(1) of $358mm, up $63mm vs. 2Q20 as FOALs were up 8% and margin expanded 12 basis points - Gain on sale margin of 2.31%, up 12 basis points vs. 2Q20, due largely to the gain booked on an RMBS transaction and other Mortgage revenue execution improvements. - $20mm increase in the return on MSR which normalized following the MSR valuation decrease caused by rising prepayment speeds in Q2 2020 which did not reoccur. • Asset quality strong as net charge-offs were only 5 basis points and nonperforming loan ratio remained low Strong asset • Increased credit reserves to $280mm at 9/30/20, driven by credit changes and qualitative factor adjustments ($63mm at 9/31/20) quality • Credit reserves covered 1.70% of loans HFI, or 3.07% excluding warehouse loans at 9/30/20 • Total risk based capital ratio at 11.3% - Total risk based capital ratio would have been 13.4% if the risk-weighting of warehouse loans were adjusted to 50% to reflect the Robust capital risk weightings of the assets that fully collateralized the loans position - $291mm of excess total risk-based capital over the minimum level needed to be considered well-capitalized. • Tier 1 leverage ratio at 8.0% and CET1 ratio at 9.2% remained strong 1. Mortgage revenue is defined as net gain on loan sales HFS plus the net return on the MSRs. 6

Quarterly income comparison 3rd Quarter 2020 $mm Observations 3Q20 2Q20 $ Variance % Variance Net interest income Net interest income $180 $168 $12 7% Net gain on loan sales 346 303 43 14% • Net interest income increased $12mm, or 7% Loan fees and charges 45 41 4 10% - Average earning assets increased 9% driven by Loan administration income 26 21 5 24% warehouse loan growth. Net return (loss) on mortgage servicing rights 12 (8) 20 N/M - Average deposits increased 10%, due to $1.1bn Other noninterest income 23 21 2 10% billion in custodial deposits, $0.3bn in noninterest- Total noninterest income 452 378 74 20% bearing retail deposits, and $0.3bn increase in government deposits (seasonal tax payments) Pre-provision total revenue 632 546 86 16% - Net interest margin, excluding LGG that have not Compensation and benefits 123 116 7 6% been repurchased, expanded 6 basis points to Commissions and loan processing expense 96 86 10 12% 2.94% compared to the prior quarter driven by a Other noninterest expenses 86 94 (8) (9%) shift in mix to higher yielding loans and managing deposit costs lower. Total noninterest expense 305 296 9 3% Pretax, pre-provision net revenue 327 250 77 31% Provision for credit losses 32 102 (70) (69%) Noninterest income Income before income taxes 295 148 147 99% Provision for income taxes 73 32 41 128% • Noninterest income up $74mm, or 20% Net income $222 $116 $106 91% - Net gain on loan sale margin increased 12 basis points, to 2.31%, due largely to the gain booked on Diluted income per share $3.88 $2.03 $1.85 91% a RMBS transaction this quarter and other execution improvements.. Profitability Net interest margin 2.78% 2.86% (8) bps - FOALs increased 1.2bn as historically low interest Net interest margin, excl. LGG repurchase obligation 2.94% 2.88% 6 bps rates continue to fuel a strong refinance market. Net gain on loan sales / total revenue 55% 55% - Mortgage rate lock commitments, fallout adjusted (1) $15,000 $13,800 $1,200 9% Mortgage closings (1) $14,400 $12,200 $2,200 18% Noninterest expense Net gain on loan sale margin, HFS 2.31% 2.19% 12 bps • Noninterest expense up $9mm, or 3%, refer to slide 9 for more details N/M = not meaningful 1. Rounded to the nearest hundred million 7

Net interest income 3rd Quarter 2020 Average interest earning assets & yields ($bn) Average liabilities and rate ($bn) LHFS Consumer LHFI Commercial LHFI Other Retail Deposits Other Deposits FHLB Borrowings LT Debt $25.7 $23.6 $23.7 $23.0 $20.3 $20.7 0.5 0.5 $20.7 $21.2 5.3 $18.8 3.5 $19.0 4.5 0.5 0.5 4.8 0.5 3.3 4.1 2.4 3.9 4.4 3.6 8.3 8.9 10.4 7.0 7.2 6.9 5.3 5.4 5.4 6.7 4.9 4.9 4.7 4.5 4.9 10.5 10.5 10.4 10.8 11.3 3.8 5.2 5.2 5.6 5.6 3Q19 4Q19 1Q20 2Q20 3Q20 3Q19 4Q19 1Q20 2Q20 3Q20 4.27% 4.04% 3.78% 3.38% 3.16% 1.23% 1.16% 1.03% 0.57% 0.44% Warehouse- $7.6bn (EOP-09/30/20) CRE - $3.0bn (EOP-09/30/20) C&I - $1.5bn (EOP-09/30/20) 5% 12% 19% 21% 8% 17% 3% 2% 2% 81% 2% 72% 56% LIBOR w/Floor > 0 Prime w/Floor > 0 LIBOR w/Floor = 0 LIBOR w/Floor > 0 Prime w/Floor = 0 LIBOR w/Floor = 0 Fixed Rate LIBOR w/Floor > 0 LIBOR w/Floor = 0 Prime w/Floor > 0 Fixed Rate LIBOR no Floor Prime w/Floor = 0 No Floor Prime w/Floor > 0 8

Noninterest income and expense 3rd Quarter 2020 Noninterest income ($mm) Noninterest expense ($mm) Mortgage Revenue Loan Fees Loan Admin Other Comp & Benefits Commissions Loan Processing Other $452 23 $378 26 21 45 21 $305 41 $296 $235 $245 $235 94 86 24 $171 77 88 84 $162 $157 358 25 29 26 23 295 22 20 61 72 5 8 12 20 29 30 26 38 35 29 108 98 96 98 102 102 116 123 3Q19 4Q19 1Q20 2Q20 3Q20 3Q19 4Q19 1Q20 2Q20 3Q20 Noninterest income Noninterest expense • Noninterest income up $74mm, or 20% • Noninterest expense up $9mm, or 3% - Mortgage revenue increased $63mm to $358mm, compared to - Mortgage expenses were flat quarter over quarter, despite the prior quarter as net gain on loan sale margin increased 12 basis increase in originations. The ratio of mortgage noninterest expense points largely due to the gain we booked on our RMBS transaction to closings declined due to certain expenses in the second quarter this quarter and other execution improvements, an 8% increase in that did not reoccur and are not expected to reoccur in the future, FOALs, and a $20mm increase in the return on MSR. including certain performance incentives related to our Opes Advisors division. - Loan admin income improved $5mm due to a decline in the LIBOR-based credit that we provide to our sub-servicing - Non-mortgage expense increased $10mm primarily due to the customers and from a higher level of fees for loans in forbearance. capitalization of origination costs in the second quarter for the PPP loans and the accelerated vesting of certain components of executive compensation that resulted from the most recent secondary share offering. 9

Asset quality 3rd Quarter 2020 Delinquencies(1) (% of loans HFI) NPLs and performing TDRs ($mm) Performing TDRs Consumer NPLs Commercial NPL $84 $73 0.40% $66 10 0.36% $65 $64 0.33% 0.32% 0.30% 33 35 26 26 29 39 38 37 40 39 9/30/2019 12/31/2019 3/31/2020 6/30/2020 9/30/2020 9/30/2019 12/31/2019 3/31/2020 6/30/2020 9/30/2020 Allowance coverage(2) (% of loans HFI) Nonperforming loan and asset ratios (3) (3) Total Total excl. Warehouse NPA/LHFI & OREOs NPL & TDRs/LHFI NPA/Total Assets 3.1% 2.6% 0.31% 0.29% 0.30% 0.28% 0.27% 1.5% 0.28% 1.2% 1.1% 1.7% 1.7% 0.21% 0.21% 0.21% 0.22% 0.16% 0.17% 1.1% 0.15% 0.14% 0.14% 0.9% 0.9% 9/30/2019 12/31/2019 3/31/2020 6/30/2020 9/30/2020 9/30/2019 12/31/2019 3/31/2020 6/30/2020 9/30/2020 1. Includes early stage delinquencies, defined as 30 to 89 days past due and nonaccrual loans 2. Excludes loans carried under the fair value option and loans with government guarantees. 10 3. Excludes loans held-for-sale

Current Expected Credit Loss (“CECL”) 3rd Quarter 2020 Allowance for credit losses ($mm) CECL methodology - Forecast • Used 2-year forecasts as of September reflecting the continued economic distress caused by COVID weighted 40% base, 30% adverse and 30% growth • Composite forecast contemplates unemployment ending the year at 10%, and recovers only slightly in 2021 • GDP similarly recovers only slightly by the end of the year from current levels and won’t return to near pre- COVID level until mid-2024 • HPI decreases about 2% from mid-2020 through 2021 • Qualitative adjustments reflect best estimate of COVID-19 impact on portfolios including estimated impact of government stimulus, forbearance/payment holidays and Fed programs 1. New loans and aging of existing portfolio 2. COVID impact sectors 3. Changes to macro-economic variables and forecast scenarios 4. Changes to underlying credit conditions 11

COVID-19 impacted industry exposure 3rd Quarter 2020 Commercial Exposure - $1.0 billion, 5.7% of LHFI Commercial & Industrial Loans $87 million UPB / 0.5% of loans Automotive Manufacturing, automotive suppliers $1.3 million deferrals to date $131 million / 0.8% of loans Leisure & Entertainment Includes restaurants, churches, theatres, etc. $0.2 million deferrals to date $40 million / 0.2% of loans Healthcare Hospitals, HMO Medical Centers No loans in deferral Commercial Real Estate Loans ~ 80% in footprint; 73% are neighborhood $300 million / 1.8% of loans (45 loans) Retail centers or single-tenant properties No loans in deferral Marriott, Hilton, IHG and Hyatt flagship hotels $261 million / 1.6% of loans (20 loans) Hotel comprise 78% of portfolio $28 million in requested deferrals to date(1) Geographically diverse; facilities in 8 different $118 million / 0.7% of loans (16 loans) Senior Housing metro areas. All have recourse to strong No loans in deferral borrowers 1. All hotel deferrals expired on October 1, 2020 12

Capital 3rd Quarter 2020 Flagstar Bancorp Total Risk Based Capital Ratio Observations 3Q20 Tier 1 CET-1 Tier 1 Total RBC Leverage to RWA to RWA to RWA 3Q20 8.0% 9.2% 10.3% 11.3% 2Q20 7.8% 9.1% 10.3% 11.3% • Total risk based capital ratio of 11.3% 11.2% 11.3% o Total risk based capital ratio would have been 13.4% if the risk-weighting of warehouse loans were adjusted to 50% to reflect the risk weightings of the assets that fully collateralized the loan o Warehouse lending—100% risk weight– has had under $5mm of losses, cumulatively, over the last 12 years o 962 basis points of total risk based capital attributed to warehouse loans, loans held for sale and loans with government guarantees that have not yet been repurchased • Tier 1 leverage ratio ended quarter at 8.0% o 666 basis points of tier 1 leverage attributed to warehouse loans, loans held for sale and loans with government guarantees that have not yet been repurchased 13

Business Segment Overview 1st Quarter 2020 Reggie Davis, President of Banking

Deposits and Lending Portfolio and strategy overview 3rd Quarter 2020 Total average deposits $19.6bn Total average LHFI $14.8bn Savings Brokered C&I 1st Mortgage CRE 19% 5% 11% 18% DDA 20% 19% CD 9% Government Warehouse 2nds, HELOC 7% MMDA 38% Custodial & other 4% 37% 13% Total: $19.6 bn Total: $14.8 bn 0.33% cost of total deposits(1) 3.71% LHFI yield • Flagstar gathers deposits from consumers, businesses • Flagstar’s largest category of earning assets consists of and select governmental entities loans held-for-investment which averaged $14.8bn during 3Q20 – Traditionally, CDs and savings accounts represented the bulk of our branch-based retail depository relationships – Loans to consumers consist of residential first and second mortgage loans, HELOC and other – Today, we are focused on growing DDA balances with consumer, business banking and commercial – C&I / CRE lending is an important growth strategy, relationships offering risk diversification and asset sensitivity – We additionally maintain depository relationships in – Warehouse lending to both originators that sell to Flagstar connection with our mortgage origination and servicing and those who sell to other investors businesses, and with governmental entities – Cost of total deposits(1) equal to 0.33%, down 15 basis points from 0.48% in 2Q20 1. Total deposits include noninterest bearing deposits. 2. Includes deposits from commercial and business banking customers. 15

Commercial lending Diversified relationship-based approach 3rd Quarter 2020 Overview Warehouse - $7.6bn (09/30/20) • Warehouse lines with approximately 345 active % Advances sold to Flagstar relationships nationwide, of which approximately 74% Warehouse sell a portion of their loans to Flagstar • Collateralized by mortgage loans being funded which are paid off once the loan is sold ~56 borrowers • Diversified property types which are primarily income- ~230 sell >75% Commercial producing in the normal course of business borrowers sell <25% Real Estate • Focused on experienced top-tier developers with ~59 significant deposit and non-credit product opportunities borrowers sell 25% - • Lines of credit and term loans for working capital 75% Commercial needs, equipment purchases, and expansion projects & Industrial • Primarily Michigan based relationships or relationships with national finance companies Commercial Real Estate - $3.0bn (09/30/20) Commercial & Industrial - $1.5bn (09/30/20) Property type Industry Manufacturing Home 17% Services Hotel/motel Building 22% 8% 26% Healthcare Multi Office 3% Family 9% 22% Financial, insurance & Distribution real estate 8% Other 45% Retail Owner Occupied 12% 10% Government & 14% Other education 1% 4% 16

Business Segment Overview 1st Quarter 2020 Lee Smith, President of Mortgage

Flagstar’s one-stop-shop mortgage model 3rd Quarter 2020 Bank Synergies Sales – multi Secondary & Cap channel Markets • Warehouse Lending •TPO • Pricing & Hedging • MSR and Servicing Advance • Distributed Retail •Outlets Lending • Direct Lending o Sales • People o Securitizations • Custodial Deposits – fund Mortgage • Products o Retain on B/S balance sheet Originations • CRA •HELOCs MORTGAGE BANKING & SERVICING Teamwork Customer Satisfaction Risk & Compliance Mortgage Optimize Results Mortgage Servicing Operations Performing Default MSR Creation Mortgage Ops • Growth & Scale • Risk and • Sale and retain •Service •Customer compliance subservicing • Multi skilled Feedback • Delinquency Mgt • Retain MSR operators • Risk and • Forbearance Mgt o Agency • Risk and Compliance • Claims process o GNMA Compliance • Other Revenue • Minimize losses • Protect asset • Variable cost model Opportunities •Support 18

Mortgage originations 3rd Quarter 2020 Net gain on loan sales – revenue and margin Fallout-adjusted locks by channel ($bn) Gain on loan sale ($mm) Gain on sale margin (HFS) Correspondent Bulk Broker Distributed Retail Direct Lending 2.19% 2.31% $15.0 $13.8 1.0 $346 1.2 $11.2 3.7 $303 $9.2 1.0 3.0 1.23% 1.20% 0.4 $8.2 2.2 2.4 2.0 1.7 0.4 0.80% 1.3 1.4 2.3 1.2 1.0 2.4 $110 2.1 2.2 $101 $90 2.0 5.1 5.8 3.8 3.5 4.2 3Q19 4Q19 1Q20 2Q20 3Q20 3Q19 4Q19 1Q20 2Q20 3Q20 Purchase 44% 41% 36% 35% 33% Mix % Closings by mortgage type ($bn) Closings by purpose and expense ratio ($bn) Conventional Jumbo Government Purchase originations Refinance originations Mortgage expense 1.22% $14.4 1.11% 1.12% 1.12% 0.3 1.02% $12.2 1.6 0.9 $14.4 $9.3 $9.3 1.2 $8.6 $12.2 1.9 2.0 1.8 $9.3 $9.3 $8.6 1.8 9.0 1.8 1.6 12.5 7.8 10.1 4.8 5.7 5.5 5.6 5.5 5.2 5.4 4.5 3.6 3.1 4.4 3Q19 4Q19 1Q20 2Q20 3Q20 3Q19 4Q19 1Q20 2Q20 3Q20 Retail 24% 23% 23% 30% 31% Mix % 19

Mortgage servicing 3rd Quarter 2020 Quarter-end loans serviced (000’s) $ UPB of MSRs sold ($bn) Serviced for Others Subserviced for Others Flagstar Loans HFI Bulk Sales Flow Transactions 1,091 1,082 1,105 $6.6 994 1,043 $5.4 $4.9 4.4 919 917 855 894 827 4.4 $1.0 2.2 $0.8 1.0 107 105 102 123 149 9/30/2019 12/31/2019 3/31/2020 6/30/2020 9/30/2020 3Q19 4Q19 1Q20 2Q20 3Q20 Average custodial deposits ($bn) MSR / CET1 (Bancorp) $7.3 $6.2 20% 20% $4.8 $4.8 16% $4.5 15% 13% 3Q19 4Q19 1Q20 2Q20 3Q20 9/30/2019 12/31/2019 3/31/2020 6/30/2020 9/30/2020 20

Supporting consumer needs 3rd Quarter 2020 Consumer Forbearance as of 9/30/2020 (UPB in $mm) (1) (2) Forbearance Requests (accounts) • Significant decrease in new forbearance requests since middle of April 28,675 • 28% of residential first lien borrowers who have requested forbearance have made their July, August and September payments and not taken advantage of the forbearance option. • Proactive customer outreach to evaluate readiness to 5,134 return to payment or need for further assistance 1,526 646 870 687 849 • Stable early-stage delinquency trends for loans not in forbearance 2/29/2020 3/31/2020 4/30/2020 5/31/2020 6/30/2020 7/31/2020 8/30/2020 9/30/2020 1. Includes temporary short-term subservicing performed as a result of sales of servicing-released mortgage servicing rights. Includes repossessed assets. 2. Includes LHFI (residential first mortgage, home equity and other consumer), LHFS (residential first mortgage), loans with government 21 guarantees (residential first mortgage), and repossessed assets.

Appendix 1st Quarter 2020 Company overview 23 Community banking 26 Mortgage servicing 37 Mortgage originations 40 Financial performance 42 Capital and liquidity 44 Valuation 47 Non-GAAP reconciliation 48

Company Overview Flagstar at a glance 3rd Quarter 2020 Corporate Overview • Traded on the NYSE (FBC) 160 87 Flagstar Retail home • Headquartered in Troy, MI Bank lending Branches Offices(1) • Market capitalization $1.9bn • Member of the Russell 2000 Index Community banking • Leading Michigan-based bank with a balanced, diversified lending platform • $29.5bn of assets and $19.9bn of deposits • 210k household & over 27k business relationships Mortgage origination • 6th largest bank originator of residential mortgages ($44.5bn during twelve months ended September 30, 2020) • Scalable platform originating business in all channels and all 50 states including 87 retail home lending offices • More than 1,000 correspondent and more than Operations center 1,300 broker relationships Mortgage servicing • 6th largest sub-servicer of mortgage loans nationwide • Servicing 1.1 million loans as of September 30, 2020 • Efficiently priced deposits from escrow balances 1. Includes seven home lending offices located in banking branches. 23

COMPANY OVERVIEW Flagstar has a strong executive team 3rd Quarter 2020 Board of Directors John Lewis Chairman Chief Audit Officer Sandro DiNello Meagan Belfinger President & CEO • CEO since 5/13 • Over 40 years of banking experience with Flagstar and its predecessors with a strong emphasis on community banking, including the management of retail operations and product strategy Chief Mortgage Community Chief Risk General Corporate Financial Officer Banking and Servicing Banking Officer Counsel Responsibility Jim Ciroli Lee Smith Reggie Davis Steve Figliuolo Patrick McGuirk Beth Correa • CFO since 8/14 • Effective since • More than 35 years of • CRO since 6/14 • General Counsel • Started as Director of • More than 30 years of September 2020.. banking experience • Over 35 years of since 6/15 Corporate banking and financial Previously COO for 7 with Suntrust, Royal financial services • Over 20 years of Responsibility on 3/19 services experience years May 2013 – Bank of Canada, and experience with financial services • With Flagstar since with First Niagara, Aug 2020. Wachovia Citizens Republic, legal experience with 2011 and has more Huntington and • Formerly a partner of Fleet Boston Financial, the FDIC and Sidley than 30 years of KeyCorp MatlinPatterson First Union and Chase Austin LLP banking experience Global Advisors and a Manhattan with NBD, Chase, and Senior Director at Comerica Zolfo Cooper • Extensive expe- rience in financial management and operations 24

Risk management COMPANY OVERVIEW Best-in-class risk management platform with 263 FTEs(1) 3rd Quarter 2020 Board of Directors Risk Committee Enterprise Sandro DiNello Risk Committee President & CEO Karen Sabatowski Steve Figliuolo Chief Compliance Chief Risk Officer Officer Chief QC / Financial Information MFIU Fraud Regulatory Operational Vendor Credit Appraisal Crimes Compliance Security Investigations Affairs Risk Management Officer Review (BSA/AML) FTEs 66 23 48 13 4 13 50 14 32 1. Does not include 29 FTEs in internal audit as of 09/30/2020. 25

COMMUNITY BANKING Higher net interest income is stabilizing earnings 3rd Quarter 2020 ● Achieving earning asset growth while continuing to grow net interest income - Strong net interest margin management ● Transition to more stable net interest income Average earning assets and net interest income (1) (2) Net interest income ($mm) Average earning assets ($bn) $24.3 $23.6 CAGR 19% $20.7 $21.2 $19.0 $180 CAGR 22% $17.8 $16.8 $168 $16.0 $16.4 $16.3 $15.4 $15.4 $152 $14.7 $146 $148 $14.0 $138 $12.3 $12.8 $12.3 $124 $123 $126 $115 $103 $107 $106 $97 $87 $80 $83 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20 2Q203Q20 Adjusted (1) (2) (2) 2.58% 2.67% 2.67% 2.77% 2.78% 2.76% 2.76% 2.86% 2.93% 2.99% 3.09% 3.08% 3.05% 2.93% 2.81% 2.88% 2.94% NIM: 1. References non-GAAP number for 4Q18; excludes $29 million of hedging gains reclassified from AOCI to net interest income in conjunction with the payment of long- term FHLB advances. Please see reconciliations on page 48 - 49. 2. References non-GAAP number as it excludes impact of $0.1 billion (2Q20) and $1.4 billion (3Q20) of average balance of loans with government guarantees that have 26 not been repurchased and do not accrue interest. Please see reconciliations on page 48 - 49.

COMMUNITY BANKING Strong market position 3rd Quarter 2020 ● Leading deposit share in Michigan, Fort Wayne, IN(1), and San Bernardino County, CA (High Desert Region) ● Provides access to markets with attractive demographics and low-cost, stable liquidity for continued balance sheet growth Michigan deposit share Key Markets 2020 Rank Deposits as of 9/30/2020 ($mm) % YoY Flagstar Deposits Deposit Median Proj HHI Proj pop Overall MI-based Institution Branches Total Share Change Market $mm % of total mkt share HHI growth (4) growth (4) 1 Chase 208 $63,501 22% 43% Oakland County, MI$ 5,922 50.1% 8.1%$ 86,562 10.7% 1.4% 2 Comerica 194 35,492 12% 22% 3 Bank of America 92 29,285 10% 28% Grand Rapids, MI MSA 392 3.3% 1.4% 68,835 10.2% 2.7% 4 Fifth Third 191 21,632 8% 30% Ann Arbor, MI MSA 265 2.2% 2.3% 78,844 12.5% 1.7% 5PNC164 21,220 7% 25% 6 1 TCF Financial 225 20,073 7% 22% Fort Wayne, IN(1) 808 6.8% 6.7% 60,699 9.4% 2.9% 7 Huntington 288 19,670 7% 17% Key Midwest Markets(2) 7,387 62.4% 6.0% 82,516 10.6% 1.6% 8 2 Flagstar 114 17,184 6% 32% 9 Citizens 82 6,372 2% 10% San Bernardino County, CA (3) 658 5.6% 1.0% 71,365 12.8% 3.6% 10 Independent 66 3,561 1% 18% Top 10 1,624 $237,991 84% 29% National aggregate$ 67,761 9.0% 2.9% Source: S&P Global Market Intelligence; Note: Deposit data as of September 30, 2020 and projections based on 2020 estimates; MI-based banks highlighted. 1. Fort Wayne, IN deposit data is based on Fort Wayne, IN Fed District. Fort Wayne, IN demographic data is based on counties within Fort Wayne, IN Fed District, deposit weighted based on Flagstar’s portfolio. 2. Key Midwest Markets Median HHI, based on Flagstar’s portfolio. 3. Deposit data is based on High Desert Region of San Bernardino County, CA. projected HHI growth and projected population growth are deposit weighted 27 4. 2021–2026 CAGR.

COMMUNITY BANKING Community banking 3rd Quarter 2020 Average commercial loans ($bn) Quarter-end commercial loan commitments ($bn) Commercial and Industrial Commercial Real Estate Warehouse Commercial and Industrial Commercial Real Estate Warehouse $10.4 $17.1 $15.5 $8.9 $13.6 $7.2 $12.1 $12.2 $6.9 $6.9 5.7 9.8 3.8 7.9 6.2 2.5 2.7 2.3 4.8 4.7 3.1 2.6 2.8 2.9 3.0 4.1 4.8 4.8 4.7 4.6 1.8 1.7 1.7 2.0 1.7 3.2 2.7 2.6 2.9 2.7 3Q19 4Q19 1Q20 2Q20 3Q20 9/30/2019 12/31/2019 3/31/2020 6/30/2020 9/30/2020 Average consumer loans ($bn) Average deposit funding(1) ($bn) Residential First Mortgages Other Consumer Loans Retail Government Custodial deposits Brokered deposits $19.6 $4.9 $4.9 $4.9 $4.7 $4.5 $17.7 $15.8 $15.9 $15.8 1.6 1.7 1.8 1.9 7.3 1.9 6.2 4.6 4.8 4.8 1.4 1.2 1.2 1.1 1.1 3.3 3.2 3.1 2.8 2.6 9.3 9.3 9.3 9.7 9.9 3Q19 4Q19 1Q20 2Q20 3Q20 3Q19 4Q19 1Q20 2Q20 3Q20 1. Includes custodial deposits which are included as part of mortgage servicing. 28

COMMUNITY BANKING Commercial real estate portfolio detail 3rd Quarter 2020 Commercial Real Estate ($bn) Portfolio Characteristics • Average LTV ~53% and DSC ~2.4% • 84% LIBOR / 13% Prime Rate / 3% Fixed Rate • Over 97% of portfolio has Prime and LIBOR rate floors at or greater than 0% • Shared National Credits ~6% of portfolio State Breakdown Property Breakdown Retail Owner Occupied Other 10% 14% 12% Michigan Texas 40% 12% California Multi Family Office 10% 22% 9% Other Colorado Hotel/motel 28% Home Building 5% 8% 26% Florida 5% 29

COMMUNITY BANKING Commercial and industrial portfolio detail 3rd Quarter 2020 Commercial & Industrial ($bn) Portfolio Characteristics NBV Commitment % Utilization • 77% LIBOR / 16% Fixed Rate / 7% Prime Rate Financial & Insurance$ 0.5 $ 0.9 56.8% Services 0.3 0.5 67.2% • Approximately 79% of portfolio has Prime and LIBOR Manufacturing 0.3 0.4 68.4% rate floors at or greater than 0% Home Builder Finance 0.1 0.3 23.5% Rental & Leasing 0.1 0.2 56.2% • Shared national credits ~42% of portfolio Payroll Protect - PPP 0.0 0.0 98.8% All Other 0.2 0.4 67.3% Total C&I$ 1.5 $ 2.6 58.1% State Breakdown Industry Breakdown OH 4% IN Manufacturing CA 3% 17% 8% Services WI 22% MI 1% Healthcare 36% TX 3% 9% Financial, Distribution MN insurance & 8% 5% real estate Government & Other NY 45% 22% 4% education SC 4% CT 4% Other 4% 1% 30

COMMUNITY BANKING Allowance for credit losses 3rd Quarter 2020 June 30, 2020 September 30, 2020 Amount(1) % of LHFI Amount(1) % of LHFI ($ in millions) Consumer: Residential First Mortgage $ 60 2.2% $ 52 2.1% Home Equity 28 2.9% 29 3.1% Other Consumer 36 4.0% 39 4.0% Total Consumer 124 2.7% 120 2.7% Commercial: Commercial Real Estate 99 3.3% 106 3.5% Commercial and Industrial 26 1.3% 47 3.1% Warehouse Lending 1 0.0% 7 0.1% Total Commercial 126 1.2% 160 1.3% Total Credit Reserve $ 250 1.7% $ 280 1.7% Total Credit Reserve Excluding Warehouse $ 249 2.6% $ 273 3.1% 1. Includes reserve for unfunded commitment of $25 million and $21 million at 9/30/20 and 6/30/20, respectively 31

COMMUNITY BANKING Warehouse lending 3rd Quarter 2020 ● National relationship-based lending platform FBC warehouse loan commitments ($bn) ● Attractive asset class with good spreads and low credit risk Outstandings Unfunded Commitments $9.8 ● Scalable platform supports current total commitments of $9.8 billion $7.9 2.2 $6.2 ● Flagstar is well positioned to hold market share, 2.7 $4.8 $4.7 leveraging relationships in complementary lines of 2.2 business, including home builder finance and mortgage 1.6 1.9 7.6 originations 5.2 4.0 3.2 ● Collateral Breakdown: Agency & Conventional 74.8% 2.8 Government 22.5% / Jumbo 2.3% / Non-QM 0.4% 9/30/2019 12/31/2019 3/31/2020 6/30/2020 9/30/2020 Lenders ranked by commitments ($mm) Net chargeoffs YOY 2Q20 Rank Institution Growth Total Share  NCO  ($mm)  NCO Rate  (bps) 1 JPMorgan Chase 27% $19,000 16% 2 First Horizon 35% 9,433 8% 3 Texas Capital 24% 8,972 8% 29 6 bps annual loss rate since 2006 4 TIAA FSB (Everbank) 23% 8,000 7% 22 5 Flagstar Bancorp 87% 7,950 7% 17 17 6 Merchants Bank 118% 7,200 6% 7 Truist 74% 6,778 6% $1.1 $1.2 $1.0 8 Wells Fargo 18% 6,500 6% 1 9 Comerica 2% 4,200 4% $1.1 10 U.S. Bancorp 18% 4,120 4% Top 10 36% $82,153 71% 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 3Q 2020 Source: Inside Mortgage Finance as of August 2020 32

COMMUNITY BANKING Home builder finance 3rd Quarter 2020 Overview Tightening housing supply Existing home sales (mm) Months supply of existing homes for sale ● National relationship-based lending platform launched in 1Q16 (left axis) (right axis) - Attractive asset class with good spreads (~375 bps) 8 12 7 - Meaningful cross-sell opportunities including warehouse loans, 10 commercial deposits and purchase originations 6 8 ● Flagstar is well positioned 5 - Focused on markets with strong housing fundamentals and 4 6 higher growth potential 3 4 - We have direct relationships with 10 of the top 10 and do 2 2 business with 56 of the top 100 builders nationwide (74 of the 1 top 200) through June. 0 - 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Source: Bloomberg (through 9/30/20) Home builder finance footprint Home builder loan commitments(1) ($mm) Unpaid principal balance Unused $2,175 $2,015 $2,101 $2,022 $2,013 $1,186 $1,154 $1,106 $1,065 $1,161 $909 $989 $947 $957 $852 9/30/2019 12/31/2019 3/31/2020 6/30/2020 9/30/2020 1. Commitments are for loans classified as commercial real estate and commercial & industrial. 33

COMMUNITY BANKING Leverage lending and SNCs 3rd Quarter 2020 Leverage lending commentary Shared national credits “SNCs” commentary • Average UPB of ~$12 million per loan • 66 borrowers, average UPB of $13 million and average commitment of $23 million • No nonperforming loans as of 9/30/20 • Total SNC breakdown: C&I ~71% / CRE ~21% / Warehouse ~8% • Loans totaling $14 million of commitments are rated as special mention or substandard • We are the lead bank in 17% of these deals and this percentage continues to grow • SNCs comprised $211 million of total leveraged loan UPB • No nonperforming loans as of 9/30/20 • Loans totaling $26 million are rated as special mention or substandard Portfolio Composition - $0.3bn UPB (9/30/20) Portfolio Composition - $ 0.9bn UPB (9/30/20) Rental & Financials & Leasing Insurance 17% 24% Services 16% Services 32% Distribution Manufacturing 6% 17% Manufacturing Healthcare 50% 4% Financial & Healthcare Insurance 2% Distribution 30% 2% 34

COMMUNITY BANKING Supporting commercial clients needs 3rd Quarter 2020 Commercial UPB deferrals as of 9/30/2020 ($mm) % of % of # of As of Portfolio # of As of Portfolio Commercial Deferrals ($mm) Borrowers 9/31/2020 Deferred Borrowers 6/30/2020Deferred ($) Change Automotive 1 $ 1.3 1.5% 8 $ 44.1 28.4%$ (42.8) Leisure & Entertainment 2 0.2 0.1% 13 14.7 12.1% (14.5) Healthcare - - 0.0% 14 3.6 9.0% (3.6) Other 11 7.1 0.6% 70 108.5 6.6% (101.3) Total C&I Deferrals 14 8.6 0.6% 105 170.8 8.7% (162.2) Retail - - 0.0% 24 90.6 29.1% (90.6) Hotel 3 28.1 10.8% 12 131.8 56.4% (103.7) Senior Housing - - 0.0% 1 7.3 5.0% (7.3) Other 7 10.7 0.4% 122 239.2 10.3% (228.5) Total CRE Deferrals 10 38.8 1.3% 135 378.3 12.5% (339.5) Total Commercial Deferrals 24 $ 47.4 1.0% 240 $ 549.1 11.0%$ (501.7) • All hotel deferrals expired on October 1, 2020. • All commercial loans requesting deferral were initially granted a 90 day deferral. If an extension was requested of the original 90 day deferral, borrower would be required to provide adequate justification for the extension. 35

COMMUNITY BANKING COVID Impacted Sectors – CRE 3rd Quarter 2020 as of September 30, 2020 ($mm) Portfolio Characteristics Credit Quality Credit Metrics (Pre‐ Median  Top 10  Total  Footprint  $ $ $ ($mm) UPB % of LHFI Loan Size Borrowers Borrowers SNCs Exposure Construction Deferred Past Due NPLs Watch DSC LTV Occ Retail$       300 1.8%$          2.2 49% 45$           19 77% 3%$        ‐ $        ‐ $        ‐ 18% 1.7 48% 95% Hotel         261 1.6%            8.8 73% 20               8 71% 58%           28           ‐           ‐ 37% 1.4 60% 61% Senior Housing         118 0.7%            5.8 89% 16            ‐ 66% 57%          ‐           ‐           ‐ 17% 1.7 62% 84% Total$       680 4.1%$          5.3 81$           27 73% 33%$         28 $        ‐ $        ‐ 25% 1.6 55% 85% Retail UPB (as of September 30, 2020) ($mm) Hotel UPB(5) (as of September 30, 2020) ($mm) ~78% of balances are from Marriott, Hilton, IHG, and 49% 56% Hyatt flagged franchises $300M (1) $261M Neighborhood Centers Luxury (2) 12% 12% Single Tenant 18% Upper Upscale 17% Shopping Centers (3) Upper Midscale 15% 21% Other(4) Upscale Retail Descriptions 1. Retail centers < 100,000 sq. ft. – generally anchored by grocery 5. Classifications as determined by STR Chain Scales stores 2. Single Tenant – Hardware stores 45% / Pharmacies 33% 3. Power centers 4. Other – includes one regional mall with $14mm in UPB 36

MORTGAGE SERVICING MSR portfolio 3rd Quarter 2020 MSR portfolio statistics MSR portfolio characteristics (% UPB) Measure ($mm) 6/30/2020 9/30/2020 Difference By Vintage Unpaid principal balance $29,846 $37,908 $8,062 Fair value of MSR $261 $323 $62 Capitalized rate (% of UPB) 0.87% 0.85% (2) bps 2018 15% 2017 & prior Multiple 2.388 2.487 0.099 2019 11% Note rate 4.00% 3.76% (24) bps 17% Service fee 0.37% 0.34% (3) bps Average Measure ($000) UPB per loan $243 $255 $12 FICO 708 722 14 2020 Loan to value 81.55% 78.31% (324) bps 57% Net return (loss) return on mortgage servicing rights ($mm) $ Return 3Q19 4Q19 1Q20 2Q20 3Q20 By Investor Net hedged profit (loss) $2 $0 $10 $1 $2 Carry on asset 25 23 17 18 30 Run-off (30) (27) (20) (20) (23) GNMA Gross return on the ($3) ($4) $7 ($0) $9 36% mortgage servicing rights Sale transaction & P/L 1 1 (1) (3) 3 Private Fannie Model changes - - - (5) - 2% Net return on the 29% ($2) ($3) $6 ($8) $12 mortgage servicing rights ($) Freddie Average mortgage 33% $292 $287 $252 $242 $292 servicing rights ($) Net return on the -2.7% -4.1% 9.6% -13.5% 16.3% mortgage servicing rights (%) 37

MORTGAGE SERVICING Servicing 3rd Quarter 2020 Servicing Profitability ($mm) 3Q19 4Q19 1Q20 2Q20 3Q20 Net interest income Interest income (FTP) $ 30 $ 27 $ 23 $ 12 $ 7 Interest expense on custodial deposits (1) (25) (22) (19) (8) (2) Total net interest income 5 5 4 4 5 Noninterest income(2) Service fee income 27 28 30 35 39 Ancillary fee income 8 10 9 18 15 Late fee income 5 5 6 2 2 Total noninterest income 40 43 45 55 56 Noninterest expense(3) (31) (31) (36) (38) (41) Earnings before Tax$ 14 $ 17 $ 13 $ 21 $ 20 Average Custodial Deposits ($bn) $ 4.6 $ 4.8 $ 4.8 $ 6.2 $ 7.3 Average Loans Serviced for Others (000's) 988 1,042 1,086 1,062 1,074 1. Expense on custodial deposits from loans subserviced which is included in net loan administration income for GAAP purposes. Includes intersegment allocation. 2. Service fee income and late fee income are included in net loan administration income for GAAP purposes; ancillary fee income is included in loan fees and charges for GAAP purposes. 3. Includes direct allocations. 38

MORTGAGE SERVICING Loans with government guarantees (LGG) 3rd Quarter 2020 LGG UPB end of period ($mm) LGG Overview Repurchased Loans Loans Eligible for Repurchase General Overview $2,500 • GNMA Loans are eligible to be repurchased, at our option, after no payment has been made for 90 days (whether due to delinquency or forbearance) $1,791 • When eligible to be repurchased, accounting rules require us to 1,783 record a loan and a related liability • Loans eligible to be repurchased are limited to GNMA loans for 1,067 which we own the MSR; not eligible to repurchase loans we are $814 $736 subservicing 52 $607 70 63 • Prior to repurchasing the loan, no interest is earned, we continue 762 724 717 to make advances and no credit risk is present 544 666 • All LGG loans, including loans eligible to be repurchased, are a 9/30/2019 12/31/2019 3/31/2020 6/30/2020 9/30/2020 20% risk-weighted asset GNMA MSR UPB end of period ($mm) Impact • $2.9 B GNMA loans (21%) are in forbearance as of 9/30/2020, of which $1.8 B are recognized on the balance sheet • No eligible GNMA forbearance loans were repurchased during Q3 $16,326 • Repurchased loans are able to be pledged as collateral with the $15,145 $15,243 $14,971 FHLB $13,768 • Drag on capital, NIM and ROE due to inflated balances created by loans eligible for repurchase; no actual income risk • Opportunity for re-securitization gains from repurchasing eligible loans, depending on final resolution with GNMA 9/30/2019 12/31/2019 3/31/2020 6/30/2020 9/30/2020 39

MORTGAGE ORIGINATIONS National distribution through multiple channels 3rd Quarter 2020 Residential mortgage originations by channel ($bn) Correspondent Broker Retail Other Bulk Distributed Retail Direct Lending $8.3 $6.6 2.4 $5.8 $6.0 $4.3 $5.5 $3.7 1.1 2.0 2.1 2.0 3.9 1.0 $2.2 $2.1 $2.0 5.9 $1.9 $1.8 0.4 0.5 $1.3 $1.2 $1.1 0.6 3.2 3.8 3.9 3.5 2.7 2.7 1.8 1.6 1.4 3Q19 4Q19 1Q20 2Q20 3Q20 3Q19 4Q19 1Q20 2Q20 3Q20 3Q19 4Q19 1Q20 2Q20 3Q20 • 3.4% market share with #8 national ranking(1) • 1.3% market share with #12 national ranking(1) • 87 retail locations in 29 states • More than 1,100 correspondent partners • 1,300 broker relationships • Direct Lending is 26% of retail volume • Top 10 relationships account for 17% of overall • Top 10 relationships account for 21% of overall correspondent volume brokerage volume • Warehouse lines with 300 correspondent relationships 1. Data source: As reported by Inside Mortgage Finance for 12M20 published August 28,2020. 40

Flagstar has a scalable origination platform that drives MORTGAGE ORIGINATIONS profitability in almost any mortgage origination market 3rd Quarter 2020 U.S. residential mortgage origination market (historical and projected volumes) 5.9 $ in trillions 4.6 4.3 4.1 3.8 3.7 3.6 3.2 3.1 2.5 2.5 2.4 2.3 2.3 2.2 2.2 2.1 2.1 2.0 2.0 1.9 1.8 1.8 1.7 1.7 1.6 1.6 1.5 1.4 1.3 1.3 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020F 2021F Nominal ($) 0.6 0.9 1.0 0.8 0.6 0.8 0.8 1.7 1.4 1.1 2.2 2.9 3.8 2.8 3.0 2.7 2.4 1.5 2.0 1.7 1.4 2.0 1.8 1.3 1.7 2.1 1.8 1.6 2.3 3.6 2.5 Real(1) ($) 1.0 1.6 1.8 1.3 1.1 1.3 1.3 2.6 2.1 1.7 3.2 4.0 5.3 3.7 3.9 3.5 2.9 1.8 2.4 2.0 1.6 2.3 2.0 1.4 1.8 2.2 1.8 1.7 2.3 3.6 2.5 Adjusted(2)($) 1.3 2.0 2.2 1.6 1.3 1.5 1.6 3.1 2.4 1.9 3.7 4.6 5.9 4.1 4.3 3.8 3.2 2.0 2.5 2.1 1.7 2.3 2.1 1.4 1.8 2.2 1.8 1.7 2.3 3.6 2.5 Source: Mortgage Bankers Association for actual periods and a blended average of forecast by Fannie Mae Freddie Mac and Mortgage Bankers Association. 1. Adjusted for historical inflation as reported by Bureau of Labor Statistics (2019 = 100). 41 2. Adjusted for population growth as reported by the U.S. Census Bureau (2018 = 100).

FINANCIAL PERFORMANCE Financial performance 3rd Quarter 2020 ● Solid growth in banking and subservicing has created more stable earnings ● Focus on efficiency and expense management Revenue Composition and Earnings Metrics Percentage Percentage Revenue (millions) 9/30/2019 9/30/2020 of Revenue Increase Community Banking$ 347 $ 439 30% 27% Mortgage Servicing 124 169 12% 36% Subtotal 471 608 41% 29% Mortgage Origination 379 942 63% NM Other(1) (16) (66) -4% NM Total$ 834 $ 1,484 100% 78% Diluted Earnings per Share(1) $ 2.46 $ 6.71 NM Return on Average Assets(1) 1.0% 2.0% (1) Return on Average Tangible Common Equity 14.0% 28.6% 1. Non-GAAP number for YTD 2019. Number shown excludes $25 million DOJ benefit. Please see reconciliations on page 48 - 49. 42

FINANCIAL PERFORMANCE Quarterly results 3rd Quarter 2020 Quarterly revenue ($mm) Quarterly adjusted noninterest expense ($mm) (5)(1) (2) (1) (2) (3) Non-Mortgage Revenue Mortgage Revenue(3) Non-Mortgage NIE Mortgage NIE Mortgage expense 1.22% $632 1.11% 1.12% 1.12% $546 1.02% $296 $305 426 $238 $240 $235 364 $317 $314 $305 149 148 102 104 96 160 153 145 206 136 136 139 147 157 157 161 160 182 (6) 3Q19 4Q19 1Q20 2Q20 3Q20 3Q19 4Q19 1Q20 2Q20 3Q20 Quarterly noninterest expense ($mm) and efficiency ratio Noninterest expense Efficiency ratio 78% 77% 75% $296 $305 $238 $245 $235 54% 48% 3Q19 4Q19 1Q20 2Q20 3Q20 1. Includes Servicing segment 2. Includes direct allocations. 43 3. As a percentage of that period’s close volume

CAPITAL AND LIQUIDITY Balance sheet composition 3rd Quarter 2020 3Q20 average balance sheet (%) 1% Cash 10% Agency MBS ~67% of assets are in 16% Mortgage loans 43% lower risk-content held-for-investment Deposits excluding assets: cash, marketable custodial deposits securities, warehouse loans, loans held-for-sale 20% and freshly-originated, Loans held-for-sale high-FICO conforming mortgages underwritten by Flagstar 20% 26% Warehouse loans Custodial deposits Efficiently funds loans held-for-sale and warehouse loans Attractive relationship 12% lending with very low 23% FHLB borrowings delinquencies Commercial loans and Other LHFI (1) 2% Other long-term debt 9% Other liabilities Primarily low risk, stable 1% MSR assets (FHLB stock, BOLI, 9% 8% Equity premises & equipment, Other assets deferred tax asset, etc.) Assets Liabilities & Equity 1) Other LHFI includes home equity and other consumer loans. 44

CAPITAL AND LIQUIDITY Liquidity and funding 3rd Quarter 2020 Adjusted HFI loan-to-deposit ratio(1) Commentary 86% 85% 85% • Flagstar has invested 82% significantly in building its Community Bank, which 75% provides attractive core deposit funding for its balance sheet • These retail deposits are supplemented by custodial deposits from the servicing business 3Q19 4Q19 1Q20 2Q20 3Q20 • Much of the remainder of Flagstar’s balance sheet is self- (2) Liquidity ratio funding given it is eligible collateral for FHLB advances Cash & investment securities FHLB borrowing capacity (which provides significant liquidity capacity) • Over $1.7 billion of additional 23% 20% borrowing capacity through the discount window 12% 10% 11% 9% 6/30/2020 9/30/2020 1. Adjusted HFI loan-to-deposit ratio is total average loans HFI (excluding warehouse loans) expressed as a percentage of total average deposits (excluding custodial deposits). Please see non-GAAP reconciliations on page 48 - 49. 2. Cash, investment securities and FHLB borrowing capacity expressed as a percentage of total assets. 45

CAPITAL AND LIQUIDITY Interest rate risk 3rd Quarter 2020 • Flagstar’s net interest income remains asset sensitive due to pay fixed interest rate swaps Earnings at Risk Economic Value of Equity 46

Valuation metrics 3rd Quarter 2020 Observation: FBC trades at a discount to its banking peers • All 6 analysts have a buy rating as of October 2020 (3-strong buy / 3-buy) • Consensus price target of $39.50 – currently trading at 80% of current price target Market / tangible book value FBC valuation vs. SNL U.S. Bank and Thrift Index Market value gap: ~$0.6B 73% 68% 3/31/2019 6/30/2019 9/30/2019 3/31/2020 6/30/2020 9/30/2020 12/31/2018 12/31/2019 Source: SNL Financial; as of 10/15/2020 47

NON-GAAP RECONCILIATION Non-GAAP reconciliation 3rd Quarter 2020 $mm Adjusted ROA, ROE and ROTCE 9 Months ended September 30, 2019 Return on Average Assets 1.1% Adjustment to remove DOJ benefit (net of tax) -0.1% Adjusted Return on Average Assets 1.0% Return on average tangible common equity 15.3% Adjustment to remove DOJ benefit (net of tax) -1.3% Adjusted return on tangible Commmon Equity 14.0% Tangible Book Value per Share and Tangible Common Equity to Assets Ratio As of As of As of September 30, 2020 June 30, 2020 September 30, 2019 Total stockholders' equity$ 2,195 $ 1,971 $ 1,734 Goodwill and intangible assets 160 164 174 Tangible book value$ 2,035 $ 1,807 $ 1,560 Number of common shares outstanding 57,150,470 56,943,979 56,510,341 Tangible book value per share$ 35.60 $ 31.74 $ 27.62 Adjusted HFI Loan-to-Deposit Ratio As of As of As of As of As of September 30, 2020 June 30, 2020 March 31, 2020 December 31, 2019 September 30, 2019 Average LHFI$ 14,839 $ 13,596 $ 11,823 $ 12,168 $ 11,743 Less: Average warehouse loans 5,697 3,785 2,310 2,747 2,508 Adjusted average LHFI$ 9,142 $ 9,811 $ 9,513 $ 9,421 $ 9,235 Average deposits$ 19,561 $ 17,715 $ 15,795 $ 15,904 $ 15,817 Less: Average custodial deposits 7,347 6,223 4,776 4,772 4,550 Adjusted average deposits$ 12,214 $ 11,492 $ 11,019 $ 11,132 $ 11,267 HFI loan-to-deposit ratio 75.9% 76.7% 74.9% 76.5% 74.2% Adjusted HFI loan-to-deposit ratio 74.8% 85.4% 86.3% 84.6% 82.0% 48

NON-GAAP RECONCILIATION Non-GAAP reconciliation (continued) 3rd Quarter 2020 $mm Adjusted net interest margin 3 Months ended 9 Months ended September 30, 3 Months ended September 30, 2020 June 30, 2020 2020 Net interest margin 2.78% 2.86% 2.81% Adjustment to LGG loans available for repurchase 0.16% 0.02% 0.07% Adjusted net interest margin 2.94% 2.88% 2.88% Adjusted Net Interest Income, Noninterest Income 3 Months ended 3 Months ended December 31, 3 Months ended December 31, 2019 March 31, 2019 2018 Net Interest income $ 152 Adjustment to remove hedging gains 29 Adjusted Net Interest Income $ 123 Noninterest expense$ 245 $ 191 Adjustment to remove Wells Fargo acquisition cos - 1 Discrerionary items 5 - Adjusted Noninterest Expense$ 240 $ 190 Adjusted Diluted Earnings per Share September 30, 2019 Diluted Earnings per Share$ 2.80 Adjustment to remove DOJ benefit (net of tax) (0.34) Adjusted Diluted Earnings per Share$ 2.46 49